State government is decentralized among three tiers — statewide, county and township. Counties are administrative divisions of the state, and townships are administrative divisions of a county. Both of them exercise state government authority, localized to meet the particular needs of their jurisdictions, as provided by state law. There are 83 counties in Michigan.

Cities, state universities, and villages are vested with home rule powers of varying degrees. Home rule cities can generally do anything that is not prohibited by law. The fifteen state universities have broad power and can do anything within the parameters of their status as educational institutions that is not prohibited by the state constitution. Villages, by contrast, have limited home rule and are not completely autonomous from the county and township in which they are located.

There are two types of township in Michigan: general law township and charter. Charter township status was created by the Legislature in 1947 and grants additional powers and stream-lined administration in order to provide greater protection against annexation by a city. As of April 2001, there were 127 charter townships in Michigan. In general, charter townships have many of the same powers as a city but without the same level of obligations. For example, a charter township can have its own fire department, water and sewer department, police department, and so on—just like a city—but it is not required to have those things, whereas cities must provide those services. Charter townships can opt to use county-wide services instead, such as deputies from the county sheriff's office instead of a home-based force of ordinance officers.

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