So Easy A Caveman Can Do It

So, the State Legislature has agreed on a revenue neutral business tax. While they figure out if it is truly revenue neutral and vote on bits and peaces to put it together, we have to keep in mind that business does not pay taxes. People pay taxes. Business just passes those cost down to the consumer. All the businesses that will flock here, according to them, will bring employees with them. Let's think about this.

The majority of the legislature still wants revenue enhancement (a tax increase). People are loosing their homes at unprecedented numbers, they are finding it difficult to meet their monthly bills, they are being attacked for money on every level of government and the unemployed have little luck in finding a job in this state. Why would anyone want to move here to pay more taxes?

A more pointed question is, why should we pay our elected officials so well to just raise taxes? If that is the best they can do, let them go home and earn a living in the real world. It takes no skill or talent to just get money when you need it. If you are lucky enough to still have a job, I challenge you to go into your boss and tell him of your economic woes. Inform your boss that there is no alternative but for him to give you a raise. Of course, if you think you know what he will say and feel you might jeopardize your job, I suggest that you go home and find ways to economize.

That is exactly what they need to do in Lansing. Economize! It amazes me that they feel so proud of themselves after doing so little. They are arguing not about spending less but rather about on what and who will cause the biggest reaction if they do not get enough money. After all, they can weasel it from the taxpayers by misrepresenting the effects and the necessity and still get contributions for their next run for office.

The budgetary crisis should be causing a reassessment of priorities. As an example, Chief Justice Taylor's budget is $160 million . It is small by state standards but they expect him to cut his budget by $2.9 million at last count. While state law prohibits salary decreases for judges, Judge Taylor and his other appellate court judges offered to reduce costs by eliminating use of state vehicles for private use. This is more symbolic given the size of the problem, however, his type of thing needs to be done throughout the various departments. While asking him to cut, they are adding a million dollars worth of new judges. Justice Taylor suggested the elimination of 10-14 trial judges and 4 appellate court judges. This would amount to real savings although it would limit the ability for political patronage by the legislature.

It behoves us to keep up the pressure on the legislature. They have a tin ear until they are personally effected. I know we will be if an increase in taxes happens.

Phantom Mills Strike Again

In February 2005 the Crestwood School District in Dearborn Heights and the Grosse Pointe School District, with very little turn out, and certainly little understanding on the part of the electorate, voted in millages in excess of the 18 mill limit on non-homestead property allowed under Proposal A of 1994. We were horrified to discover that this was not the first time this had happened and that it was becoming a way of life in districts across the state. We believed that this was a violation of the Headlee Amendment contained in Article IX of the State Constitution.
By holding mills off to the side and not levying them until after the rollback required by the Headlee Amendment, when revenue exceeded the rate of inflation, they could override the amendment years into the future without bringing it to a vote. This had the effect of compounding the effect of the value of the portion applied to bring the millage levy back to the 18 mills each year, since it would not be effected by the rollback and clearly was not legal under law or charter.
In April of that year, a request to the Attorney General was made on our behalf by Representative Fulton Sheen, who served as Vice Chair of the Tax Policy Committee. Along with that, an 11 page report was submitted in support of our position by the Anderson Economic Group out of Lansing. The report is still available under Special Reports on our website and is titled Phantom Mills.
An answer was not forthcoming from the Attorney General’s office. Our repeated requests were ignored. We had waited almost a year then we thought we could solve the problem with the “Stop Over Spending Petition” that was going to close the loopholes being used to get around Article IX Section 26 -32 of the Constitution. That petition effort was sabotaged by special interest. We collected over a half million signatures but deliberate multiple signatures (one signing as many as 11 times) caused the drive to fail.
Now "Phantom Mills" are spreading to sinking funds for schools, charter millages for cities and eventually counties, if this has not already happened.
The last month we have been attending meetings in Dearborn where their charter commission just voted to place a charter proposal before the council which would allow a 15 mill maximum levy with an additional mill used to override Headlee in the future.
We can not allow this to continue, the electorate will have no way to determine what they are voting for and the Headlee Amendment will become useless. The WCTA will start over to attempt to stop this.

Show Us All the Spending

The Michigan Taxpayers Tea Party in Lansing was a success. Hundreds for taxpayers showed up to tell the governor an legislature not to raise taxes. In the same spirit the Wayne County Taxpayers Association has joined a coalition of taxpayers from around the country in an effort how state money is spent.

As you may know, last year President Bush signed S. 2590, the Federal Funding Accountability and Transparency Act, into law. The legislation creates a searchable online database that the general public can use to track the flow of hundreds of billions of dollars in federal grant and contract expenditures. We deserve the same access to state government finances.
Creating a similar website on the state level would entail little cost, but it would greatly increase transparency in the distribution of precious tax dollars and help hold all elected officials accountable for state spending. By acting now, we in Michigan have the opportunity to lead the nation in making spending more easily accessible to the public. Tell your legislator: "Show me the spending!"

By participating in the letter campaign you can help convince your legislator to support legislation. You can see pictures and a video of the rally and send letters to you legislator from our website. www.wctaxpayers.org

Recall 1983

It is almost upon us. Tomorrow, Wednesday April 18 at 11:00 AM, taxpayers from around the state will converge on the steps of the State Capitol to protest the the possibility of a tax increase. Just like in 1983 the people in this state find themselves faced with unemployment, foreclosures an an economic woes and the solution offered is to raise their taxes. The result in 1983 was the attempted recall of Gov. James Blanchard and the recall of two State Senators. A third senator was almost recalled but the campaign was sabotaged by those who wanted to put and end to the recall movement.

Just like then, people are plotting to sabotage taxpayer influence. The Michigan Federation of teachers and Artserve have changed their lobbying day to coincide with this rally. The Michigan Liberal Blog has sugested that their readers show up and behave outragiuosly before the media to convince them we are rightwing nuts. We suggest that you bring a camera and, if you see them, take a picture. You can also interupt an interview and tell them that this person does not represent you or the majority of other people at the rally.

Bring you camera, have a good time and we will see you there. I'm proud of you!

On the Road To Lansing

Momentum is building and people are calling and communicating that they will be in Lansing on Wednesday, April 18th at 11:00 AM, for the Michigan Taxpayers Tea Party. If you plan to come, and we hope you do, get there early. Bring your cameras and take pictures. There may be disruptive individuals or others taking pictures who may be trying to discredit participants of our rally.

These are not new tactics. They have been used before. There may be those among us who are on the side of the taxspenders. We have seen this behavior at other rallies and while people are trying to gather signatures for petitions. Don't forget your enthusiasm and commitment. You may be able to shape the future of this state. You may be able to influence the badly needed change in direction that this state needs.

Bring your sincerity and a smile. Bring your family, friends, a teabag for the Governor and a sign. Please leave the front of the capitol in the same condition as you found it (taxpayers have to pay to clean it). If you have time, visit your Senator and Representative while you are there and tell them NO MORE TAXES. Help us create jobs and economic developement through the proper environment and not selective government intervention.

SEE YOU THERE!

Governor and Taxspenders to Taxpayers: Game On!

Last week, a Lansing reporter informed Leon Drolet, President of Michigan Taxpayers Alliance, that a Governor's staffer had told him that the Gov was aware of the April 18 Taxpayer Teabag protest planned at the Capitol - and was preparing a "surprise" for protesters. What "surprise"?Turns out that the American Federation of Teachers (AFT) have moved up their lobby day in Lansing to coincide with our tax protest. They support Granholm's plan to mandate government preschool for all children. And they are not alone. An organization called "Artserve", which supports more tax dollars being spent on art, has also changed the day and time of their lobby day to April 18. It appears those that demand more and more spending and higher taxes will try to outdo taxpayers that day.

According to the AFT Michigan website, they are planning to bus public school teachers in from around the state. It is now even more important than ever to spread the word to all taxpayers about the Taxpayer Protest Rally! Everyday taxpayers need to show up at the Capitol in Lansing on April 18, bring a teabag that we will deliver to the Governor, and tell Lansing politicians to balance their budget by cutting spending and enacting reforms; NOT BY RAISING TAXES ON CITIZENS!

Get to the Capitol around 10:00am. Rally starts at 11:00am, but you will need time to park. Taxspenders are planning to hijack this rally, and demand more and more of YOUR money. We cannot allow the voices of everyday taxpayers to be drowned out. Take the day off work, clear the calendar, gather your family and friends, and head to Lansing on April 18!

Rallying the Taxpayer Troops

Our “Virtual Teabag Campaign” is moving along nicely. People are coming to our website copying our virtual teabag and sending them in emails to their elected officials in Lansing, Michigan. You can also locate your Senator and Representative from our site.

The Wayne County Taxpayers Association is also helping to sponsor a rally on Wednesday, April 18, at 11:00 am, on the steps of the state capitol in conjunction with the Michigan Taxpayers Alliance and Americans for Prosperity . We want to tell the State government – Hell No! Don’t raise our taxes. WE INVITE EVERYONE TO JOIN US!

Make sure to come early because parking may be difficult. We are also planning to have a truck and car caravan around the capitol building. We hope to have some local celebrities to attend and speak. BRING A TEABAG AND A SIGN. Don’t forget your enthusiasm.

Tea Party inspired by Boston

We are encouraging everyone to send their State Representative and Senator a tea bag. Remind them of the people they represent and their responsibility to represent them. Tell them not to raise taxes. In a state budget of $43billion dollars they should be able to find things to cut. With people leaving this state in droves, we do not need another reason to drive them away. We also don't need to drive away the business that is still located in this state.

For those of you who do not drink tea, you can use our virtual tea bag. Just right click on the bag, copy and paste it to your email. You can also locate your legislators email address by clicking on the links below the picture .

I hope we can generate enough interest to make them sick of tea and enough volume to to convince them not raise our taxes

Taxing the Tapped Out

It's time to fight back. I was in Lansing when Governor Granholm presented her budget. While there, I visited the office of my representative who happens to be Speaker of the House Andy Dillon. He provided me with a copy of this years budget and said see if you can find ways to balance the budget. I took it determined to try.

When I got home I began to look at what he had given me. Then it came to me. We are paying all those people up there very well to do a job. We, as their bosses, have a right to expect that they do it. We do not have a staff at our disposal or departments that can answer any questions we have or follow our directions. We can not order department heads to cut their budgets-but they can. We couldn't hand our bosses our bills and say adjust my pay so that all the bills can be paid and, by the way, include enough for some other things I want. Why should I go through all the trouble when it should be done by them and has been done by other larger organizations. They wouldn't take my advice anyway.

Our job is to set the financial limits of government and theirs is to decide the priorities. With that in mind, we have placed on our website a discussion between Frank Beckmann, WJR Radio host, and Economist David Littman on how to cut the budget. We also have a letter drafted on behalf of Michigan residents by the National Taxpayers Union which will enable you to easily contact your state senator and representative, so you can tell them not to raise your taxes.

State of the Mess Address

I suppose that Governor Granholm should be a cheerleader about the future of Michigan in her State of the State address but I was absolutely horrified at the number of times she used the word invest as a substitute for spend taxpayer money. Apparently she believes that those who still have jobs in this state should assume the burden of retraining everyone who is unemployed, pay for everyone's children to go to a community college and provide everyone with health insurance. I wonder if she is aware that those who are educated are already leaving this state in droves to get employment in other states. I am not saying that education is not important but education alone will not save us. It already receives 37% of every dollar the State spends and if it is exported after it is paid for by Michigan taxpayers it certainly will not help the State.

The govenor talked about taxpayer funded student loans which implies acquiring the bureaucracy that that goes with it to administer and collect the debt. She calls on local governments to consolidate and share services or threatens the loss of revenue sharing from the state. These are funds that are better administered by local units of government and are better overseen by local taxpayers. Who will be deciding the necessary criteria? She talks of the need for infrastructure repairs but the state is unwilling to lower the weight that trucks can haul which tears up our roads and bridges or to supervise the poor quality of material and workmanship of those who are repairing them.

She has requested that business pay its fair share. Businesses do not pay taxes. People pay taxes. Any costs must be passed on to the consumer. In addition to the cost of the tax we must also assume the cost to keep the records and file the returns. It should not be up to the governor or the legislature to decide who succeeds in business. It should also not be their job to decide who gets taxpayer money to operate. It is their job to create an environment where business can grow and prosper.

I look forward to seeing the governor's budget priorities.It is her job to submit a balanced budget under the State Constitution -not one that requires an increase in taxes.

Tax and Spend Experts

The membership of Gov. Granholm’s special commission on the budget reads like a meeting of tax increasers anonymous. As for bi-partisan, they belong to the party of tax and spend.

Lets start with the best known Republican, Gov. Milliken. He really is bi-partisan. He supported Dem. John Kerry in the last election for president. When he was the governor, he let us drink PCBs in our milk rather than chance a cut to state revenue.

Next we have Gov. James Jobs Jobs Jobs Blanchard. When he was Governor., he gave us a 38% increase in our income tax and caused the recall of two senators who supported him.
Former Rep. Senate Majority Leader Dan DeGrow we believe never met an increase in taxes for education, good or bad, that he didn’t support. He also lost the support of his party for his attempt to run for Attorney General.

Former Dem. Attorney General Frank Kelly, had a long run in office and knew how to play politics. He also was one of the main reasons there were so many violations of the Headlee Amendment allowed. (Article IX Sec. 26-32 of the State Constitution)
The list goes on. If Governor Granholm thinks those of us who have been around for a while thinks this is anything but making someone else responsible for her decision to raise taxes, she has another think coming.

Raising taxes should not be a consideration. Unlike in the past , the auto industry will never come back to its glory days in this state nor bail us out of this mess. We must look to other states to see how they have succeeded. We must diversify and compete with other states. We have to give our graduates a reason to stay in this state instead of leave for another.

In desparation to bring some sense to the issue we created an audio public service announcement on our website in hopes that people will forward it other in their address book. You can also contact your legislators from our website. I am hoping that others will take the time to do so as well.

An Appealing Year

If you are thinking about selling your home anytime soon, this is definitely the year to appeal your property tax assessment. The housing market across the state is tanking. Foreclosures are up for nonpayment of mortgages. They are also up for non payment of taxes. Since the State has changed the rules to allow foreclosure after two years of nonpayment of taxes, many people have lost their lifetime investment due to job loss or wage cuts. This is a buyer’s market. Home prices are dropping so they can be sold and be affordable. Tax increases are expected to be requested at all levels of government. (The worst solution possible)
Many people chose to ignore their right to appeal their SEV, which should be half of the true cash value, because they are being taxed at the Taxable Value which was capped with the passage of Proposal A in 1994. This limited the taxable value increases to the rate of inflation or 5% which ever is less. If you have been living in your home since Proposal A passed, you are likely paying more than 35% less in taxes than someone who just purchased a similar home. Remember, the assessment cap is removed when the property changes ownership. New owners are stuck paying taxes based on the State Equalized Value.
Don’t forget, if you live in the city of Detroit, you must first appeal to the Board of Assessors before mid February to appeal to the Board of Review in March. Everyone else should call their city or township and inquire when their Board of Review will be meeting. Make sure you do the work necessary to make a successful appeal. You should be able to get sales that have occurred in your area from a local real estate office or the city assessor. You should also be able to see the SEV of other houses in your area and the worksheet they keep on your home to insure accuracy of information.
If you need information on how to appeal you can contact us by phone, mail (include your phone number) or online.

Cobo Conspiricy

It seems like every two years Mayor Kwame Kilpatrick of Detroit suggests the expansion of Cobo Hall. This year he got his buddy County Executive Robert Ficano to do the deed for him. Its not that the idea is such a bad one, it is that the taxpayers never seem to get relief from the Cobo expansion project. They don’t seem to care what laws they break, what rights they trample or how much the taxpayer pays to achieve their goals.
At least the project has gotten less ambitious. At one time they wanted to build a new facility and attach a hotel without any idea what they were going to do with the old one. The price tag under Ficano seems to have dropped some as well, but we still have to consider that the bonds from the 1989 expansion will not be paid for until 2015. That has not been the only costs assumed by the taxpayers. We have been paying through Downtown Development, Tax Increment Financing and local taxes.
Of course, any new project must start with an Authority made up of individuals who have not been elected by anyone. Then, they are authorized by the legislature and appointed by some elected official(s). The State seems to want to be involved on this project too and will be represented if it flies. I think this is so the $16.2 million grant that was given to Cobo Hall in 2006 will not have to be given this year but rather extracted from taxpayers as is customary in a different manner.
It is proposed that this non elected body be given the authority to bond for this plan to the tune of $968 million for the 270 sq. ft. expansion. We should be grateful that this amount includes paying off the existing bond balance. Cobo Hall would then be turned over to private companies to be managed. Of course there is no guarantee that they will not buy $500,000 worth of artwork like the mayor did in 2002 when they were expected to lose millions of dollars.
Article IX Section 25 of the State Constitution says we should have the opportunity to vote on such matters. This is something they conveniently forget all to frequently and it certainly has not stopped them in the past. To insure that the counties and the legislature approve the plan, $233 million from the 22 year extension of the of the hotel and liquor tax would be split up between the 83 counties.
Few of these projects ever live up to their expectations (Pontiac Silverdome, Poletown Plant, first Cobo expansion, etc.). Cobo Hall loses tens of millions of dollars each year which leaves the taxpayer holding the bag. Even if they expand Cobo Hall there is no guarantee that the massive expendatures will produce the desired results.
If business is expected to benefit so much by this expansion, then they should be willing to foot the bill. Businesses are not the only ones who have been ravaged in this state. Taxpayers pay all the bills as consumers, even those imposed on business. With all the problems on the state and local level, more taxes for a car show or possibly a few more conventions makes no sense as a solution.

Blog, blog , blog , blog , blog!

While everyone is busy analyzing what has happened this election season, I would like to give praise to the bloggers. Both sides have their opinion about what happened but it is the bloggers who gave life to the dead. They are the ones who made the media readers more careful about what they said for fear of being exposed for their bias or errors. It is they who took to task the arguments and gave them a clearer or different perspective. Even those who do not have access to the internet were exposed to a more thoughtful discussion as a result of the bloggers.

Some of you are full of beans, but that only stimulates others to respond. Bloggers are unmerciful in their judgement of some and forgiving in your retribution of others. They are big enough to be inclusive and diverse enough to cause others to be conclusive. I for one am grateful to have someone out there watching my back against these very smooth people who represent and inform me. If we can maintain a tollerance for other opinions and truth, we might make this a better place to live.

This land is my land

In Michigan, Proposal 4 on the November ballot gives new meaning to the definition " this land is my land". How did we get here in the first place? How did we allow government to take our property as if it was theirs to do with as they choose? How did we allow them to give our property to private concerns for private benefit and to increase government coffers? For that matter, how do we allow government to take our homes, which we may have worked for our entire life for back taxes, after just two years, in a deplorable economy of their making? "Power tends to corrupt, and absolute power corrupts absolutely".

Proposal 4 is the first step in putting the people of Michigan back in charge. We hope the people of Michigan have the good judgment to Vote Yes on Proposal 4 and remind those in government that the people of this state are soverign.

Failure To Educate

The Michigan budget for 2007 contains $15.9 Billion for education. That is 37% of the State Budget. You would think that with that much money we could get better results. Maybe that is because a good number of our teachers, certainly not all, are more concerned about themselves then they are about their students and their job performance.

Given the language of Proposal 5, which mandates inflationary guarantees to education and limits local district responsibility for pensions, we can assume that must be the case. The Michigan Education Association, who was the major impetus behind the initiative, worded the proposal so that 2/3 of the increase will go to teacher pensions the first year and more each year as the state liability grows faster than the rate of inflation. Nowhere is there an indication that the money would be used to improve educational quality or accountability.

You would think we would learn that when they say "It's for the Kids" we sould put up our guard. Experience should teach us that it is usually not the case.

Best deception money can buy

We have been receiving calls concerning literature and calls that have been received from the Citizens for Education Committee . It is an indication of the kind of war chest being used against taxpayers. We wish we had a penny for every dollar that was spent producing, designing and distributing the literature that is very appealing to the eye and includes the, makes you want to hug them, pictures of happy students. Actually, the students in the pictures don't look like they need a thing. They have involved teachers. They look like they have the tools to learn. They also look like they are having a great time learning.

Unfortunately, this has very little to do with Proposal 5 which advocates maditory increases for education. In fact, the proponents of Proposal 5 are running a blatantly deceptive and misleading campaign indicating that the funding will improve our schools and make college more affordable. In reality, Proposal 5 never mentions student achievement or lower tuition. In fact, over 2/3 ($380 million) of the proposed $565 Million is designated for teacher pensions.

While the proposal caps pension responsibility at the district level, Proposal 5 transfers the responsibility to the State. The State's projected annual costs associated with the required retirement contributions will rise faster than inflation. To meet the education funding guarantees, adjustments will have to be made within existing resources or taxes must increase to raise general revenues. As a result of this, local districts could show less restraint when negotiating contracts.

If you want to keep the smile on your face Proposal 5 is not the answer.

Monkey business

The effort to place the SOS Michigan proposal on the November ballot is over. The Michigan Supreme Court has refused to consider the case after the ruling by the Court of Appeals. What isn't over is the determination to have the same or a similar proposal on a future ballot.

While I was attempting to get affidavits from those who had mistakenly signed twice for submittion to the court, I encountered some interesting situations. My first attempt was an address where the signator had died in January and signed the petition twice the following May. I was able to get the next two people to say that they had not signed twice intentionally. The next two addresses did not exist. The streets exist but the addresses did not.

Who would benefit from trying to sabotage our signatures? Certainly not SOS! That is why they collected what they thought would be a significant amount of signatures to compensate for the possibility of error - more even then other petition drives which had made it to the ballot.

Who would find it necessary to harass people who were collecting signatures? Who would have enough resources to copy over 500,000 signatures to a data base in such a short time to find enough duplicate signatures that they would not normally expect to find? Who would not want the voters of the State of Michigan have the opportunity to vote on the issue? Who would not want the people in charge? Because of the 65% approval rating among Michigan voters, special interest might have more to gain by stopping the vote from going forward.

We are smarter and wiser as a result of this effort. We will not let it happen again.

Don't make the same mistake

Don't make the same mistake in Michigan as they did in Colorado. The K-16 proposal can only hurt Michigan's economy. What is really significant is that Proposal 5 transfers primary responsibility to fund pensions to the state and does not make any provisions for decline in the economy.

According to the Citizens Research Council, "Over two-thirds of the initial additional costs to the State from Proposal 2006-05 arise from the provision to cap employer retirement contributions. This cost component represents a new financial obligation to the state budget and will steadily increase each fiscal year. The State's projected annual costs associated with the required retirement contributions will rise faster than inflation, thereby requiring policymakers to reconfigure state finances to meet the education funding guarantees within existing resources or to raise general revenues. "

As a result of this, local districts would have the opportunity to show less restraint when negotiating contracts.

65% Support SOSmichigan

DEARBORN HEIGHTS, Mich. – Nearly two-thirds of Michigan voters plan this November to vote "yes" on Proposal 6, a statewide ballot measure that would eliminate state legislators' taxpayer-financed lifetime pensions and limit increases in state government spending to the annual rate of inflation plus state population growth unless voters approve larger spending hikes, the Detroit Free Press reported Monday. http://www.freep.com/apps/pbcs.dll/article?AID=2006609040341
Sixty-five percent of likely voters surveyed last week responded "yes," the Free Press reported, when asked by pollsters if they would support "a proposal that would do two things: First, halt any future contributions by state government to pensions for state legislators, and second, require voter approval for increases in state and local government spending above the rate of inflation."

Rose Bogaert of Dearborn Heights, Wayne County chairman of the YES on Proposal 6 campaign, said voters "are clearly fed up with politicians in Lansing and want more say in how our tax dollars are spent.""Just eliminating lifetime pensions for politicians will save taxpayers over $800,000 a year," Bogaert said. "Beyond that, Proposal 6 puts the people in charge by putting a reasonable, modest limit on how much government spending can increase every year and requiring voter approval first before politicians can spend above that reasonable limit."Bogaert said voters also agree with the Michigan chapter of the National Federation of Independent Business, which endorsed the measure after 78 percent of Michigan NFIB members responding to an internal poll supported a "yes" vote on Proposal 6. "This poll indicates that voters overwhelmingly understand, as small business leaders have pointed out, that limiting the growth of government spending and taxes will help Michigan create and attract the new jobs we desperately need right now to support our families."NFIB/Michigan State Director Charlie Owens said in a news release endorsing the proposal, “I think small business owners sense a direct link between our state and local governments’ tendency to tax and spend at a higher level than most other states, and the fact that businesses are fleeing Michigan for better economic climates.” http://www.nfib.com/object/IO_29724.html
The poll also found that 21 percent said they would oppose the proposal, the Free Press reported, while 14 percent said they were unsure. The poll was conducted last week by Selzer & Co. Inc. of Des Moines, Iowa, which surveyed 803 likely voters and has a margin of error of plus or minus 3.5 percentage points.Last week, the Michigan Secretary of State's office found that 80 percent of the over 500,000 signatures gathered statewide in support of Proposal 6 are those of valid registered voters, far more than the 317,000 required to place the proposal on the November general election ballot.The bipartisan state Senate Fiscal Agency reported earlier this month that Proposal 6 will prohibit pensions for future members of the Legislature, saving taxpayers $837,000 a year. www.senate.michigan.gov/sfa
The proposal would also allow state government spending to increase each year, but limit that increase to no more than the annual rate of inflation plus the annual percentage of Michigan’s population growth. Lawmakers could increase spending above and beyond the allowed increase limit by placing a higher spending proposal on the ballot for voter approval. The proposal would also require local voter approval of all new city and county fees, assessments, and long-term indebtedness. The bipartisan Senate Fiscal Agency reported that beyond the $837,000 annual savings on lawmakers' pensions, "it is difficult to suggest any other direct fiscal impact that passage of the constitutional amendment would have on the budgets of state or local units of government.”The increase in this year’s state budget over the previous year, the agency reported, is actually less than the inflation and population growth limit the measure would establish. Supporters say that proves how reasonable the proposed limit is, and that its primary effect will be to ensure spending increases remain at a reasonable rate after Michigan's economy recovers.