Ann Arbor city and school officials weigh in on possibility of two tax proposals on November ballot
Ann Arbor residents could be asked to consider two new tax proposals when they make their way to the voting booth in November.
But even with the renewed push for a city income tax, local school officials say they aren't worried about the chances of a 2-mill countywide enhancement millage passing if it shares the ballot with another tax proposal.
"We should not let something that does not affect the underlying substantive rationale to affect our own, or citizens', perceptions of the worth of the investment," said Ann Arbor school board Trustee Glenn Nelson, one of the leaders of the enhancement millage drive.
Nelson said the returns to Ann Arbor residents from investing in education will hold true regardless of whether the city income tax appears on the ballot.
"The communities with high-quality schools will be the ones that experience job growth by attracting well-educated people and attracting high-tech companies," Nelson said. "The children and young people who receive an excellent education will be better prepared for productive, satisfying lives."
Ann Arbor City Council members received the final draft of a feasibility study Friday outlining the city's potential to generate an additional $7.6 million a year in revenues from a city income tax. The council is expected to decide Aug. 17 whether to put the question on the ballot to have commuters to Ann Arbor pay a 0.5-percent tax and residents pay a 1-percent tax.
Property taxes in Ann Arbor would come down by nearly 15 percent if an income tax is enacted, offsetting the cost of the new tax for many people, city officials say.
"Certainly our preference going on the ballot would be to be the only revenue question," said City Administrator Roger Fraser. "We think that they're quite different issues and how people perceive that, we don't know. But the fact is that, even if this is approved, it's still almost 18 months after it's approved when we would begin to see any of the revenues."
City Councilman Stephen Rapundalo, D-2nd Ward, said he has no hesitations about putting the income tax question side-by-side with the school millage.
"I personally would prefer to have it on the November ballot so as to maximize the number of people who can come out and speak to the issue," he said. "Quite frankly, I think Ann Arbor voters are smart enough to discriminate between various proposals and understand what one is for and what the other is for, and not necessarily tie any of them together."
City Councilman Leigh Greden, D-3rd Ward, notes the differences in the two proposals.
"I think the key distinction between them is that the school proposal, as I understand it, would be for a 2-mill property tax hike, which would apply to everyone who pays property taxes, and there would be no corresponding reduction in some other tax," he said. "Whereas, here with the income tax, if you are a property owner, you would by law have a 14 percent reduction in your property tax bill."
If the income tax doesn't go on the November ballot, city officials could take a chance at it early next year.
"Under state law you can have an election four times a year and the next election would be February," Greden said. "I don't think there's anything else on the ballot in February. There's a May election, which is a school election and so those would be the next options if council were to not choose the November ballot."
Ryan Stanton covers government for AnnArbor.com. He can be reached at 734-623-2529 or ryanstanton@annarbor.com.
David Jesse contributed to this story. He covers K-12 education for AnnArbor.com and can be reached at 734-623-2534 or davidjesse@annarbor.com.
Comments
cook1888
Wed, Jul 29, 2009 : 6:46 a.m.
I will vote for a tax increase when I can vote myself a raise. We are living in extremely difficult economic times and every person and every institution need to find ways to function with less. Do the people that propose these ideas realize there is nothing left to squeeze from the taxpayers? We are faced with our own increased costs and reduced incomes. People that commute into Ann Arbor also spend money here and they already pay taxes in their own communities. Leave their paychecks alone.
Ming Bucibei
Wed, Jul 29, 2009 : 1:05 a.m.
NO NEW TAXES, NO TAX INCREASES!!! CUT CUT CUT CUT CUT EVERYTHING!! ming bucibei
aataxpayer
Tue, Jul 28, 2009 : 10:26 p.m.
I listen to NPR and am generally considered liberal at work, but I really have a hard time accepting either of these tax proposals. I don't know where to cut spending in the schools, but I do know that CHS is a good high school in its own way. Do people know we actually have about 6 high school programs (Clemente, PHS, HHS, CHS, Skyline, Stone School). Can we really afford that many programs? With respect to the city budget - eliminate the 14 FTE fire positions this year instead of next year and save 11 million dollars. Why wait?
Johnmc
Tue, Jul 28, 2009 : 8:46 a.m.
I am always amazed at the quality of arguements that occur around education. Usually they revolve around money and rarely are genuine educational issues discussed. It seems that after one has children past the school age te needsof children to be educated take a lesser place to the needs of self interest. Self interest seems to be the key to the income tax. People have often scoffed at Ann Arbor for their taxes while speeding in and out of town or while shoving the homeless, mentally ill and destitute out of their communities on Ann Abor. More recently they even tried this with police protection asking Ann Arborites to supplement their safety. Taxation, education, transportation seem to be more like regional issues that should in a more enlightened environment be treated as such. I personally think that finding quality administrators is a difficult task since much is asked of them and they are paid less than is demanded of them. Reducing the number of administrators and buildings might help in this regard. The MEA many years ago made this proposal to the legislature by coordinating services through the ISDs. Rather than going after each other over parochial issues we should be collaborating on all issues education, taxation and other services(rapid transit). I may have doubts about the millage and income tax, but I also have heard things which make me suspicious of the arguements against them. I am looking for a few enlightened minds to inform me. Someone who sounds like they listen to NPR rather than cable. I can hear the shouting off the pages and yearn for a well reasoned and supported arguement instead of unsupported opinions, blatant self interest, and cleches I;ve heard before in talking points on TV.
GraceJean
Mon, Jul 27, 2009 : 10:52 p.m.
I couldn't agree more with what Samshoe wrote above. State and local government employees arrogantly isolate themselves in their ivory towers, keeping their gravy train flowing off the backs of taxpayers. When money runs a bit short, they just say, "Let's propose another millage or tax increase." And, this would actually be ok with me, only if many of their decisions did not end up being completely self-serving. As an example, Washtenaw Community College (WCC) administrators time and time again have taken millions in taxpayer dollars, only to out-source valuable on-campus work to out-of-state and out-of-country entities. And, with the few dollars the WCC administrators claim to save, they write themselves "very nice" pay increases, year after year after year. In the meantime, many here in Michigan remain unemployed, and many of us here are losing out on this valuable work experience. Only a well trained and well experienced workforce will lure future employers to this state. But, the next time a millage comes up to support WCC, it will probably pass (yet again). Well, for me anyway, enough is enough already. It's time to clean house and start over from scratch. The current model in place gave us a 15% (and still rising) unemployment rate.
righta2
Mon, Jul 27, 2009 : 10:02 p.m.
Although they have put this to voters in the past it has been a possibility to bring it to voters again for several years. (and they will keep bring it back over and over and over in the hopes that they sneak it by) I do agree as well that their should be ONE election a year in NOVEMBER, keep those costs down, also less of a chance they will toss this on a ballot at some odd point. I would also like to see any increase in taxes have to pass not only by a majority vote, but by a majority vote with at least half of the eligible residents voting. Raising taxes or setting a new tax isn't about saving anyone money, period. It is about them wanting more money to spend. Period. As far as I can tell City Council hasn't been doing a top notch job of spending money now, so why give them more to fritter away.
goblue0812
Mon, Jul 27, 2009 : 8:46 p.m.
I do feel as though this thread has gone in a direction that is far from the orignial article. However, this is the price we pay for an online newspaper. As far as Dagny's response to me; Community is not for everyone and not everyone needs to be there. For some, it is not the best decision. But having spoken with people who have spent time at both Huron/Pioneer and Community (meaning those who did not get in until their junior or senior year) I am 100% confident that CHS is not a waste. I feel no further need to argue about it on this forum because ultimately I feel as though the AAPS do what they want and disregard the opinions of the students/parents/faculty (I base this on the building of Skyline). And although I am sad to say this, I am no longer a part of AAPS and try my best not to get involved with its ridiculous politics. As far as the tax goes, I believe that U of M should begin paying taxes to the city of Ann Arbor - they do after all - own a large portion of it.
The Grinch
Mon, Jul 27, 2009 : 7:58 p.m.
Some very uniformed comments on this page. So sad, because this is an important topic. First, the proposed income tax will NOT go to schools and will NOT go to the AADL. It is for city operating expenses. Second, thanks to Proposal A, cities across the state are limited in their ability to raise property taxes. OK--that was its purpose but, when property tax revenues fall, what then to do? Some sort of income tax is a potential solution. So is cutting the budget, which leads to.... Third, Ann Arbor has been on a budget cutting binge for several years (closing a fire station, laying off police, etc...). So, for those who want to slash the budget rather than raise taxes, make suggestions that will slash millions of dollars per year without drastically changing the quality of life in A2. Parks maintenance and programs? These are part of what makes A2 what it is, why it is a desirable town for many to live in, what therefore keeps property values high (yes, tea baggers, high taxes and government programs that they create can create value!). Road repair in a town that already has far too many roads in need of repair? Snow removal in a town that already does a relatively poor job of leaf removal? Police and Fire? Leaf Removal? Water line and sewer repair (yes, you pay a water bill, but that does not cover costs)? These and the personnel costs that go with them, ladies and gentlement, are the big ticket items in the city budget. Which of them do you want to cut in order thay your taxes not be raised? Commuters ask the (they think) rhetorical question: Which city service do they use? The answer: most of the above. I live outside of A2 but use its parks and playgrounds, drive its roads, enjoy the protection of its police and fire departments when in the city. This is not to say that the proposal is without problems. The idea that A2 can tax me without my representation strikes me as... wrong. More troubling, it seems clear that while homeowners in A2 will see their taxes go down, renters (who tend to be poorer than homeowners) likely will see their taxes go up and their rents remain the same (Who believes that landlords will reduce rents as their property taxes go down?). So there are issues that need to be addressed as A2 considers whether or not to institute an income tax, but let's deal with facts as we express our opinions, not tea bagging myths.
Tony Dearing
Mon, Jul 27, 2009 : 6:53 p.m.
Bob, thanks for encouraging the conversation to stay constructive and on point. This thread has drifted toward a discussion that disparages or defends Community High School, which really isn't central to the story. It's time to steer the conversation back to the main issue, and we appreciate your efforts to encourage that.
Bob Martel
Mon, Jul 27, 2009 : 6:08 p.m.
These posts are getting a little personal and bordering on the nasty. It sure would be nice if we knew who you all were (i.e, real names!)
DagnyJ
Mon, Jul 27, 2009 : 5:55 p.m.
Go blue, I know quite a bit about Community. I have had children go there, and other relatives go there. Now that it's over I can say what I really think: Community is a waste. How do you know you wouldn't have done just as well at Huron or Pioneer?
goblue0812
Mon, Jul 27, 2009 : 5:29 p.m.
DagnyJ: I am a graduate of Community High School. I can assure that I am neither rich nor white. I was accepted into 4 universities, including the University Michigan (where I matriculated in '08) Northwestern University, The University of Chicago, and Michigan State University. I was offered a $40,000 scholarship to attend UofM. Both U of Chicago and Northwestern flew me out all expenses paid to visit their campuses. The Communicator, Community High's newspaper has consistantly ranked within the top 5 in nation wide high school newspapers/yearbooks. The mock trial team has placed as high as 4th in the country, and during my freshmen year '05 we placed second in the state competition. I myself was a finalist for the Bill and Melinda Gates Millennium Scholarship. I can assure you that if Commnity was a school where the rich kids were dropped off simply to take easier classes then I would not have received the numerous awards that I did, and that my high school would not have ranked in the state's top 10 for MME scores since its inception. Before you go criticizing a school and saying it is a waste of money, do your research.
rollingrock
Mon, Jul 27, 2009 : 5:26 p.m.
An array of voices have been clamoring for greater "transparency" and a "voice" despite the fact that opportunities for these have always been there. As we read the responses to this discussion of a modification of tax structure--NOT solely a new income tax--a good dialogue is already underway. I like it. Then the voters will vote. Democracy will work once again. Hurrah, Ann Arbor! As usual, despite a few nay-sayers, the City will continue to lead. During these tough times for Michigan, we all should be thankful for Ann Arbor, Kalamazoo, and Grand Rapids. Keep the momentum! We have lots to do. rollingrock
Mick52
Mon, Jul 27, 2009 : 5:10 p.m.
Many promote this tax citing the UofM being tax exempt and UM employees using city services. Keep in mind the UofM has its own police, fire runs are paid by the state, the U has its own trash collection, and has paid for street improvements, and I believe, a fire truck. The U offers space for the Summer Festival and Art Fair. I think it is unfair to blame the UofM for the city's problems. Also we face proposed tax increases at the federal, state and local level already. The city spends too much, on essential services and especially on non-essential services. For example, take the recent reduction in the police dept. The Chief says that road patrol will not be effected. Makes you wonder: if the PD can get along with fewer officers, why was staffing so high? Overspending perhaps? Before increasing taxes, the budget should be investigated for cuts in non essential areas. How much does the city spend to shelter the state's homeless? Housing the former YMCA tenants cost into the millions. Where else is the city overspending? This is one area where the AANews failed.
Skyraider
Mon, Jul 27, 2009 : 4:49 p.m.
Speaking of revenue enhancement, how about a millage reduction of 1 mill each from AATA and the Library empire? Ted Annis says that that ATTA is "Awash in cash" and library competed with the city in the purchase of a now lovely nature area called Dicken Woods.
uawisok
Mon, Jul 27, 2009 : 4:11 p.m.
Community High is not "an place for rich folks to park their kids for a easy grade" Community High kids plan their own ciricullum and also take classes at U-M, WCC, Eastern and learn thru self directed internships which all have to be approved by the schools councilors. It's stand alone status is probably not nessesary and might be a good fit with those who are going for tecnical/science ciricullum at Skyline if there is room there. The days of brick and mortor institutions for education is waning and not as critical thanks to the internet.
aataxpayer
Mon, Jul 27, 2009 : 3:45 p.m.
KJMClark says the city charter mandates elimination of the general millage, but I don't think it eliminates the "benefits" millage. That's a big problem, since it is the early retirements and out of control benefits that are causing the mess.
djm12652
Mon, Jul 27, 2009 : 3:37 p.m.
Ryan....the Poor DDA would lose $800K? Perhaps they should cancel all of the signs they have budgeted...what $900K? I know it will be difficult for guests in our town to stand at the corner of Fourth Ave and Washington looking for Main Street. Heaven forbid we residents point the way when asked.
Bob Martel
Mon, Jul 27, 2009 : 3:09 p.m.
David (Jesse) Thanks to all of you at Annarbor.com for hanging in there with this tough group (meaning your readers.) This is all new to us as well. From your end, I imagine that reading these posts is like trying to drink from a fire hose! Keep your collective chins up and my best to the staff. Bob
Pyro
Mon, Jul 27, 2009 : 2:08 p.m.
Exactly what commuters will be paying the tax? Do the students pay? Do the fans visiting the Michigan sporting events pay? Do the guests who visit the Art Fair have to pay? Do the people or persons just commuting through AA from one side to the other (Scio Twp to Ypsi) have to pay?? Ann Arbor and the School board have to go back to the basic services. As for all of all the comments about the city employees....salaries, pensions....how about we all take a look at what the city leaders and school board members are making.
samshoe
Mon, Jul 27, 2009 : 1:31 p.m.
AnnArbor.com really needs to investigate and report on the waste in Ann Arbor city government, the very generous benefits and pensions of city employees and the waste in the Ann Arbor school district. The rest of us are feeling the pain of this recession - why aren't we seeing any sacrifice on the part of the city and the school district.
Ryan J. Stanton
Mon, Jul 27, 2009 : 12:55 p.m.
This is a follow-up story. We went somewhat in-depth on the historical background of the issues in the stories you will find under the "More info" section at the end of the article. I understand how you might have missed that. But check it out. Lots of info there, including a lengthy feasibility study on the income tax proposal released Friday by city officials. There is a FAQ sheet as well. Thanks for reading. This is an issue we will certainly continue to follow, and explore all aspects of, leading up to November. One issue that stands alone is that the DDA will lose about $800,000 from the elimination of the city's operating millage if an income tax is enacted. It would be up to the Council to decide whether to make that up to the DDA.
DagnyJ
Mon, Jul 27, 2009 : 12:48 p.m.
Yes, to the closing of Community HS. Let's have a thorough investigation of school expenses before we start throwing more money at them. Community is a waste. It's not for alternative learners, it's where rich, white parents park their kids so they can get easy grades and small classes. It drains money from the district that should go to support all students. And has anyone looked at the cost of running the nearly empty buses all day between CHS and the other high schools?
Ann Arbor Resident
Mon, Jul 27, 2009 : 12:37 p.m.
Our local government and school board once again refuse to accept the economic reality of SE Michigan. Instead of raising school taxes, they need to come to grips with reduced resources and make appropriate changes in the school system. One proposal they must consider is the closure of Community High School. They have ample room in the new state of art Sklyine High School to acccomodate the 400 Community HS students. They can transfer teachers from Community to Skyline thus reducing fixed costs (teacher salaries, benefits, overhead). They will eliminate the need to support the Community HS building, which is very old and must be in need of repair. They can sell the property for a one-time infusion of cash into the school system and potentiall increase the property tax base. Yes, the Community students and faculty will lose the close-knit school community and this will be a loss for Ann Arbor. However, like families and businesses have to do in hard times, hard choices and sacrifices need to be made when resources are limited.
Macabre Sunset
Mon, Jul 27, 2009 : 12:32 p.m.
One way to eliminate a few dollars of wasted tax revenue might be to have fewer elections. I'm quite troubled by the concept of a commuter tax. Ann Arbor citizens voting on a tax that applies to people who can't vote.
hepcat
Mon, Jul 27, 2009 : 12:30 p.m.
As a disabled property owner, I am in favor of the city income tax, if it lowers property taxes. Rising property taxes could drive me from my home. Income tax is the only fair way to raise revenue.
Tex Treeder
Mon, Jul 27, 2009 : 12:15 p.m.
A city income tax, what a great way to kill a local economy that might finally be showing signs of recovering and is helping keep the greater region afloat. How many times do we have to say No to a city income tax? Four times year at every allowable election?
Fred Posner
Mon, Jul 27, 2009 : 12:02 p.m.
Nothing says welcome to Ann Arbor than more taxes. Is there anyone at AnnArbor.com investigating the budget for waste?
sellers
Mon, Jul 27, 2009 : 11:54 a.m.
I agree with trigg, what will commuters get for paying the tax. Access to have their kids use the parks at the same price as residents? Whatever is funded by the general fund would have to be made available to the commuters as well. Will college students be subject to the income tax as well since they don't have a permanent residence? When you look at Flint, Lansing, Saginaw, Detroit - are those good examples of what income tax can do???? Grand Rapids and Jackson are not horrible, but the others in the list are dying fast - losing population and jobs (estimates show AA may take over Lansing and Flint in population). Would a commuter tax be better and use the commuter tax to fund things like the AA-Howell train, AATA, or other mass transit ideas. That would be a better point to point approach where the commuter would be paying to use the roads and foster the growth of mass transit - something to sustain growth and competition with cities that have mass transit.
SpamBot1
Mon, Jul 27, 2009 : 11:38 a.m.
These are tough times, no doubt, but we still have to keep our priorities in order. What is the best way I can help myself? Invest in education. The research is overwhelming.
KJMClark
Mon, Jul 27, 2009 : 11:37 a.m.
Designated - You should check some of the other articles AnnArbor.com has run on this topic. Perhaps you are unaware that it's the City Charter that requires the city to eliminate the general fund millage if we get a city income tax - not Council. So what you wrote about City Council restoring property taxes would be illegal. It would require a charter amendment to put back any portion of the general fund millage - which would require a vote of the residents. For tidge - The income tax would replace the general fund millage, not the schools or library millages. You would get the same police, fire, planning, public parks, road repair millage etc. benefits that you're currently free-riding on. You'd just have to pay something for clogging our streets, endangering our pedestrians, and taking a resident's job, instead of expecting residents to pay your share. Please remember that if you work for a private employer, your employer is already paying into that millage, either directly or through rent, and would get a property tax cut as part of the change. However, if your employer is the University, the city services are subsidized by residents and other businesses, since the University doesn't pay any taxes. So University employees who don't live here are free-riding. As are federal employees who don't live here, County employees?, probably even the non-resident employees of lots of other non-profits.
David Jesse
Mon, Jul 27, 2009 : 11:28 a.m.
FYI - School board members are paid $130 a month, plus reimbursable expenses.
Bob Anderson
Mon, Jul 27, 2009 : 11:19 a.m.
Typical of A2 school board. Lets look for more taxes. Get serious, until the MEA changes some of the pension provisions to reflect what the rest of the community has to deal with, they will not get a yes vote from me.
KJMClark
Mon, Jul 27, 2009 : 11:17 a.m.
"We should not let something that does not affect the underlying substantive rationale to affect our own, or citizens', perceptions of the worth of the investment." - Trustee Glenn Nelson This is a really impressive piece of gibberish! Mr. Nelson could have written statements for the Greenspan Fed. Of course, in reality, the School Board is acting more like the big banks. The district was warned before it built Skyline High that it was basing it's projections on a bubble economy. They ignored all warnings and built the palace on the hill anyway. Now they want to come back to the voters for a bailout for their poor decisions. That's some Citigroup-level arrogance. Maybe we should look into administrative staff salaries instead? I do hope we don't pay the School Board.
tidge
Mon, Jul 27, 2009 : 11:11 a.m.
Exactly what benefits will I (a commuting employee of an Ann Arbor employer) enjoy for contributing 0.5% of my income to Ann Arbor? Will my children be allowed to attend Ann Arbor Public Schools? Will they be allowed to have an Ann Arbor District Library card?
uawisok
Mon, Jul 27, 2009 : 10:54 a.m.
Until the MEA and politcians embrace the reality of the economics behind their pay and pensions, and get onboard with self funding 401K style I'm voting NO,NO,NO,NO...welcome to the new realities forced on everyone else and these 2 groups can no longer feed from the public trough!! Business as usual is over!!!!
Designated Conservative
Mon, Jul 27, 2009 : 10:54 a.m.
With the demise of the Ann Arbor News, did reporters lose their ability to ferret out the background history of a story? This article is missing a great deal of important information, like the fact that this is not the first time a city income tax has been proposed in Ann Arbor - a little historical perspective would be very helpful to your readers. Also, perhaps the reporter is unaware (also because of a collective loss of AANews memory?) of the rancorous mess created by the Ypsilanti City Council when they voted to put a local income tax on the ballot in 2007? There is a great deal for AA residents and leaders to learn from the Ypsilanti's failed income tax scheme. Most important for homeowners to understand is that the City Council cannot legally bind itself to automatically lowering (and keeping low) the local property tax rate in exchange for passage of a local income tax. If the tax were to pass but not generate enough revenue, the City Council could simply restore the higher property tax rate without a new vote of the people. From the story above, it appears this is news to the reporter as well.