MAC and Plante Moran CRESA Conduct County Survey
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Survey Finds that Michigan Counties Should Look at Space Usage, Maintenance to Save Government Funds 

 1/22/2010 


SOUTHFIELD, Mich.– A 2009 survey performed by commercial real estate advisor Plante Moran CRESA (http://www.pmcresa.com) and the Michigan Association of Counties (http://www.micounties.org) has revealed that by looking at the way county services use space, governments may save up to 35 percent in facility costs.

On average, facility and building costs can account for 10 to 15 percent of a county government’s total budget allocation.  To identify ways to reallocate these funds back into services that will benefit the public, Plante Moran CRESA (PMC) and the Michigan Association of Counties (MAC) surveyed current space standards being integrated, per-employee space usage, responsibilities, maintenance and how these factors affect annual operating budgets.

PMC and MAC surveyed 83 Michigan counties, with 25 counties, or approximately 30 percent, responding with the following information:

  • There is a significant lack of space standards; with up to 85 percent of respondents not regulating space usage 
  • Space drives cost trends; on average, counties are using 35 percent more space than necessary per employee
  • Maintenance efforts and costs add up, and quickly; facility ownership and operations can cost up to $7.25 a square foot 

“Due to the challenging economic environment, many counties are experiencing significant budget pressures which are making it increasingly necessary to look at ways to reduce operational costs and reinvest in essential services,” said Timothy McGuire, MAC Executive Director.  

To assist county governments in examining methods of how to further reduce and control operational costs, the following questions can serve as a guideline to help identify space and cost-saving opportunities:

  • What are the services and the service level that your organization needs and wants to provide?
  • Based on these identified services, how much space is necessary to support or provide them?
  • What are the political and financial realities of your organization, and how can this affect the decision-making process?

“These survey results have identified for counties across Michigan a starting point to reorganize and potentially reallocate up to 35 percent of their annual facility and building costs,” said David Asker, vice president of PMC. “By identifying and prioritizing core public services, the staff usage and the space the facility truly needs by measuring against national standards, Michigan county governments can realize long-term solutions to immediate budget restraints.”

Readers can find the entire study on our Web site at http://government.pmcresa.com

About the Michigan Association of Counties (http://www.micounties.org)
The Michigan Association of Counties (MAC) was formed in 1898 to advocate for the interests of Michigan's county governments. Over the past 100 years, MAC has evolved into a highly respected organization that offers the full spectrum of association services that distribute important public information to its members. MAC offers members educational programs, legislative representation, local workshops, a legislative and summer conference, and produces an eNewsletter, an annual Michigan Counties directory, and weekly legislative communications to keep members up to date on the latest events that affect county governments.