Ballot proposals

Millage: Part deux

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For the second time in six months,Lansing voters will be asked to support an increase in the city’soperating millage rate to bolster revenue for police and fireprotection as well as local road maintenance. All eight City Councilcandidates support it.

Voters shot it down 52 percent to 48 percent May. What will they say this time? 

While the city is asking for the same 4-mill increase —which would raise the city’s operating millage rate from 15.44 to 19.44— this proposal stands to generate $7.6 million instead of $8 million,which is what would have been generated in May. Also, this money wouldgo toward the next fiscal year budget and not affect any of thosedepartments’ budgets until July 1, 2012. The proposed increaserepresents a $4 increase for every $1,000 of a property’s taxable value.

The proposal would allow the city to override the HeadleeAmendment for five years, allowing it to raise the taxing capacity to20 mills. The cap is slightly above 19.1 mills. Theoretically, theCouncil could raise the operating millage rate by about 3.7 millswithout voter approval, but no Council member or candidate has pledgedhe or she will do that if this proposal fails.

This proposal also differs from May’s because dollaramounts are allocated specifically for police, fire and roadmaintenance: 1.5 mills each for police and fire (or $2.85 million) and1 mill (or $1.9 million) for local road maintenance.

Some critics of the millage in May, suchas 3rd Ward Council candidate Jason Wilkes, have said they wereskeptical about voting yes because they were concerned the revenuewouldn’t ultimately go to those services, but elsewhere in the GeneralFund budget. The Council approved a non-binding resolution the nightbefore the May 3 special election saying it would be used for thoseservices.

However, similar to the circumstance in May, the city isanticipating another budget deficit for the next fiscal year — to thetune of $12 million to $15 million. To balance this fiscal year’sbudget shortfall, the city laid off 36 police officers and 11firefighters and closed three fire stations. Eleven of those policepositions were recently filled with a federal grant.

Because property taxes are calculated bythe taxable value of a house — which have largely been on the decline —Mayor Virg Bernero said recently that, like with the May proposal, mostproperty owners won’t see a net tax increase on their property.

“A significant amount of misinformation about thismillage has been circulating. It’s been characterized by some as thelargest tax increase in history, but most homeowners would see a lowerproperty tax bill even with the millage,” he told the City Council Oct.24. On that same night, the Council unanimously approved a non-bindingresolution that says it “fully and enthusiastically” supports themillage.

Some political observers said the first try failed because millage supporters did not target absentee voters soon enough.

“I think the public safety millage willdo better than it did before,” said Todd Cook, a Democratic politicalconsultant with Lansing-based Main Street Strategies. “The most likelyscenario is that it squeaks out a win. (Supporters) have been moreaggressive working the absentee vote than last time.”

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