Lansing Change: "Like Tearing a Band-Aid off"

new representative in the Michigan State House stopped by to address city council Monday night.

Mark Ouimet, (R-Scio Township), elected in November, told council that things were going to change quickly in Lansing.

“There are three paths that have been talked about. Two have been done in the past. One is to do nothing. The other is a very slow approach,” said Ouimet, who will serve on the taxation and transportation committees and chair the intergovernmental committee. “The third, which I think will be the approach up in Lansing, is like tearing a Band-Aid off. And I think it’s going to be relatively quick.”

Ouimet said one of the first things people will see sweeping change to Act 72, which could give the state more power in managing cities and school districts in dire financial straits. He noted that 41 of Michigan’s 550 school districts operating with deficit spending. He said he expect that list to swell by up to a 40 a year for three years and said he expected to see a many municipalities find their way on to the list shortly.

Mayor Gretchen Driskell voiced several concerns about Lansing’s plans to eliminate taxes without identifying alternative sources of revenue.

Of particular concern, Driskell said, was a Republican plan in the senate to eliminate personal property tax. Driskell said that personal property taxes represent 22 percent of the city’s revenue.

“While Saline may be in a better position than some of the cities you are talking about, that is just not a real alternative, without something to replace it,” she said. “Please do not just say that somebody else will figure it out later.”

Ouimet said he understood Driskell’s concerns.

“Certainly the surcharge tax that’s out there now I am almost certain it will be eliminated relatively soon. So if that is removed, then that just widens the gap by $1.8 million. Like anything else, we need to find how we are going to fill that,” Ouimet said. “There are a lot of challenges. A lot of my colleagues on the Republican side have taken the no tax pledge, so I don’t know which direction it is going to go.”

Ouimet said he expected answers would begin appearing soon.

“I think we will know more on (Feb. 17) when (Gov. Rick Snyder) talks about his budget. That’s when we’ll get a real understanding of what direction Gov. Snyder will be taking,” he said.

Council member David Rhoads wants to see the questions answered sooner than later.

“I urge the legislature to do what they can to remove the uncertainty that exists right now,” Rhoads said. “When people are uncertain about what taxes are going to where, then people don’t make decisions. And when they don’t make decisions, business doesn’t happen, and the economy just grinds to a halt.”