Completely Out of Touch With Reality

Multiple tax increases are requested in the August Primary Vote.  Our elected officials need to understand that the taxpayer cannot pay any more, they simply cannot afford it.

• Do they understand what the private sector has been through since 2008?
• Do they understand what the private sector is going through right now?
• Do they understand what the future looks like for the private sector?
• Where is the shared sacrifice between the public and private sectors?

The answer from our public officials is to raise taxes so they can avoid the pain of real structural cuts that will build a fiscal responsible budget that is sustainable.  In the past months I have personally met one-on-one with multiple local public officials, I believe they are rejecting the “New Normal” we are in and are hoping things are going to return.  Hope is not an effective strategy.

The public sector has avoided all of the cuts the private sector has seen since 2008 in jobs, wages and benefit reductions.  In fact in many cases they have seen raises; these are the “Step Increases” they get and try and tell us they are not a raise in salary.  I have been told that the public sector trails the private sector by 1.5 years in changes, they are 2.5 years late!  Where is the shared sacrifice.

When they ask for these tax increases they put it in terms of $100 per year based on some value of the home.  No matter how you look at it, it is an increase in taxes and how many $100 per year increases can we take, it is time to stop the marketing ploy and hold them accountable to be fiscally responsible with our tax money.  Stop insulting our intelligence with this method of selling the millage increase.  First prove they are responsible, transparent, and accountable with our tax dollars; then give us a honest justification after real structural costs have been addressed.

Here are the 2 requests for higher taxes on the Rochester Hills August Primary Ballot:

1)  Oakland Count Art Institute Authority Millage

The Oakland County Art Institute Authority established pursuant to Public Act 296 of 2010 to allow for continuing support of art institute services for the students, residents and visitors of Oakland County. The law allows the Authority to seek authorization from the electors to levy a tax of not more than 0.2 mill (20 cents per $1,000 of taxable value) on real and personal property to provide revenue to an art institute services provider for this purpose. Accordingly, to continue providing art institute services to benefit the residents of Oakland County, shall a 0.2 mill on all of the taxable property located within the County be imposed for a period of ten (10) years, being years 2012 through 2021? It is estimated that if approved and levied, this new millage would generate approximately $9,847,191 in 2012.

• A tax increase of .2 additional mills for 10 years
• The DIA currently has $100 million in cash, this tax increase will raise under $10 million per year
• The art is owned by the City of Detroit
• They have high administration salaries and employee benefits
• Mismanagement of building renovation costing millions more than planned
• The DIA only serves a small special interest group
• This tax increase will take the pressure off and they will continue poor practices
• Why does the tri-county have to pay for this small special interest group?
• Why doesn’t the DIA have a plan to stand on their own like others?
• Why can’t they sell assets to fund operations as they become independent?

2)  Police Millage Renewal Plus New Millage to Maintain Current Service Level

Shall the City renew the expiring 1.2083 mills ($1.2083 per $1,000 of taxable value) and levy up to 2.5 additional mills ($2.50 per $1,000 of taxable value) on the taxable value of all property assessed for taxes in the City for 10 years, with the first year of levy in calendar year 2014 (for fiscal year 2015) and continuing through 2023 (for fiscal year 2024), inclusive, to fund and maintain the current level of police protection, services and operations? This will provide estimated revenue of $10,864,051 if levied in full in the first year.

• No option to pass existing millage funding levels
• A tax increase of 2.5 additional mills for 10 years
• Marketed as a transfer from the general fund to a police specific fund
• Promise to not raise the millage in the future is non-binding
• Why isn’t there a proposal to continue funding at existing levels?
• Why do we want future permission to raise taxes without a vote?
• Why not ask for a tax increase with justification when they need it?

There is huge resistance and hidden agendas to stop any meaningful change that will help our community avoid bankruptcy.  Yes, I did say the “bankruptcy” word; we are on the same path as Detroit, Pontiac, Highland Park and the many other communities that are failing.  Now is the time for action in our local community to avoid these painful events that are our inevitable future.  These tax increases are only temporary fixes that will not avoid the long term problem.

Our elected officials call “Action” raising the millage rates as demonstrated in these proposals.  We need to demand they take action to put together a fiscally responsible budget that is sustainable without raising taxes.  They can do this by finally sharing the sacrifice with the private sector and understand the reality of the “New Normal” we are in.

True leaders make hard calls that might not be politically correct, but put the organization on the right path to success.  It is time to stop the path we are on and change course and hold our elected officials accountable.  Stop the games of the past and begin the true hard work that makes us fiscally responsible and sustainable in the long term.  This is the only way to avoid bankruptcy.

Where is the elected official who is going to take this strong leadership role?