Politics & Government

County Tax Proposal 'Not Going to Happen,' Says Wayne County Commission Chairman

Wayne County is facing a $160 million deficit due to a drop in property tax collections and public safety spending.

This article was submitted by Wayne County Commission Chairman Gary Woronchak's office.

Wayne County Commission Chairman Gary Woronchak said Friday that it is extremely unlikely the county will ask voters for a property tax increase proposed by County Executive Robert Ficano.

County Chief Financial Officer Carla Sledge formally presented Ficano’s 2013-14 budget to commissioners on Thursday, along with a request that they consider putting on the Nov. 5 ballot a proposal for a new property tax of 1 or 2 mills.

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Woronchak, D-Dearborn, said reaction from commissioners was swift and clear after Sledge’s remarks.

“There isn’t anywhere near the support on the commission needed to put any new county property tax on the ballot this fall,” Woronchak said. “The county executive is welcome to forward any proposal he wishes, and we would give it the due respect of a hearing, but I know that right now it’s just not going to happen.”

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One mill would raise around $35 million toward what Sledge said is a $70 million structural deficit in a budget that is balanced on paper, but could be difficult to stay within unless there is cooperation by all departments and a strong effort to operate within the funds allocated.

The county has accumulated a deficit of $160 million over the past several years, and another $40 million could be added to that when the books are closed on the current fiscal year at the end of September, mostly because of public safety departments spending more than budgeted.

Woronchak acknowledged that the county has a severe revenue problem, with a 30 percent drop in property tax collections over the last six years due to falling home values. Wayne County collected $370 million in property taxes in 2008, compared to just $267 million this year.

“All of the public perception problems that the county has been hit with — news stories about troubled projects, bloated pensions for some appointees, and criminal investigations — understandably makes taxpayers believe the county’s financial problems are because of mismanagement,” Woronchak said. “And while these things certainly hurt the county financially, none of the county’s mistakes add up to anything close to the negative impact of crashed property values.”

Meanwhile, many cities and school districts have compensated for falling property values by getting voter-approved tax rate increases, while the county’s millage rate has remained the same.

The county charter requires a two-thirds vote of the commission to put any new or increased tax on a ballot, meaning 10 of the 15 commissioners would have to support the proposal. Also, the proposal would need Commission approval by Aug. 27 in order to meet ballot printing deadlines for the November election.

The charter also requires that any new tax be approved by a 60 percent majority of voters.


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