A proposed city income tax that will be on the Nov. 6
ballot was the subject of a recent panel discussion in
Roosevelt Auditorium.
Proponents of the tax, bemoaning state budget cuts and
the loss of property tax revenues from failed businesses
in recent years, say the money is needed to continue providing
the existing level of city services through 2014.
 |
TAX TALK: Ypsilanti Mayor Paul Schreiber
addresses
an audience question during a panel discussion
on a
proposed city income tax at Roosevelt
Auditorium
Sept. 27. City officials say the income
tax is needed to
balance its budget and maintain
existing services.
Eastern Michigan University
students, including
(above, from
left) Alli Sheppard, president of the EMU
Residence
Hall Association; Chris Bylone, president of
the Graduate Student Senate; and Greg Jones,
president
of Student Government, are concerned the
tax
will eat into students' personal budgets and affect
EMU enrollment. Cheryl Farmer (far right), the
former Ypsilanti mayor, also is pictured. Photo
by Babs
Rambold
|
Opponents of the tax say the city of Ypsilanti should
find alternatives other than a city income tax to curb
its budget woes. Some Eastern Michigan University students
even surmised a city income tax might shrink enrollment
at the institution.
"The cost of an extra income tax could be a burden to
students and could hurt enrollment," Greg Jones, president
of EMU Student Government, said before a crowd of approximately
45. "Students may choose to go to Central (Michigan) or
Western (Michigan).
Jones said there are more than 1,300 part-time employees
at EMU, most of which are students. He added Student Government
would take a stance this week on the issue.
"I understand the city needs money," said Alli Sheppard,
president of EMU's Residence Hall Association. "But, I
don't think students should have to bear the burden of
the tax."
Sheppard said EMU's state appropriations are down,
too, and has resulted in higher tuition for students. The
proposal "punishes" EMU students who are registered to
vote in Ypsilanti, she said.
Under the proposal, the city would enact an income tax
of 1 percent for city residents and a 1/2 percent
tax for non-residents who work at businesses, including
EMU, within city limits. For EMU employees — including
students who work at the University — that live in
the city, they would pay the former tax while an EMU employee
who commutes from Ann Arbor or Detroit, for example, would
pay the latter.
If passed by voters, the tax would commence July 1, 2008,
and end July 1, 2014. Homeowners would receive a 2-mill
property tax reduction. An income tax would bring in approximately
$4.3 million to the city in its first year.
Since 1998, Ypsilanti has lost $3.7 million in personal
property taxes on equipment from heavy industry, said Ypsilanti
Mayor Paul Schreiber. This was due to the closings of Mobile
Wheel, Exemplar and Peninsular Paper over the years, he
said. Former Ypsilanti mayor Cheryl Farmer added the city
is expected to lose another $724,000 in property taxes
in 2008 when the Visteon plant is expected to close later
this year.
"Ypsilanti is changing from an industry city to a services
city. The economy is not favorable," Schreiber said. "Therefore,
cities are trying to make up for that."
Schreiber said 22 other counties in Michigan collect revenues
from a city income tax. Since
2001, the state has cut its funding to Ypsilanti by $2.9
million, he said.
The proposed income tax would be used to sustain current
services that would otherwise be cut or reduced, said Ypsilanti
City Manager Ed Koryzno. Additional funds from an income
tax would prevent the elimination of three firefighters,
two police officers, planning department interns, parks
maintenance, 50 percent of recreation subsidies for the
city pool and senior center; and funding for an AATA bus
route from Ypsilanti to Ann Arbor.
"I understand an income tax would be a detriment to EMU," Schreiber
said. "But, we have to decide what kind of community we
want. We may have to cut six police officers in
the next two years (if the income tax doesn't pass). We
need to have a balanced budget, one way or the other."
"There are a lot of things wrong with this proposal," said
Pete Murdock, chairman of the Stop City Income Tax organization
and former mayor of Ypsilanti. "There's a saying, 'Don't
tax me. Don't tax thee. Tax those people from behind the
tree.' The people behind the tree are at EMU."
"The city has always had issues with the fact EMU is tax-exempt," Murdock
continued. "The answer is not to tax the employees and
students at EMU. The answer is to have Lansing fix its
problems."
Even with a city income tax, Murdock claimed the city
would still operate at a deficit.
"That's not a plan that has an end to it. That's just
kicking the can down the road," Murdock said.
"You get what you pay for," Farmer said. "Help us weather
the storm until Lansing gets it right."
"A lot of students are not even aware this issue is coming
up," Jones said. "Students here need to tell other students
to learn more and make a decision."
For those who plan to vote and are not registered, the
voter registration deadline is Tuesday, Oct. 9.
