#FactsMatter, the Citizens Research Council of Michigan podcast

With Michigan's financial books for FY2022 now closed, a formal announcement came last week that the state income tax rate would drop from 4.25 percent to 4.05 percent for tax year 2023 due to a rate cut trigger added to state law in 2015. However, a new Attorney General legal opinion has determined that any rate cut would be temporary, with the rate returning to 4.25 percent for tax year 2024. Our “plain English” interpretation of what appears to be flawed statutory language also suggests the rate will very likely need to return to 4.25 percent in 2024.

The Citizens Research Council of Michigan does not take positions on ballot issues. In analyzing Proposal 3 on the November 8 ballot, we hope to provide more information so that voters can make better-informed decisions in formulating their votes.

The Citizens Research Council of Michigan does not take positions on ballot issues. In analyzing Proposal 2 on the November 8 ballot, we hope to provide more information so that voters can make better-informed decisions in formulating their votes.

The Citizens Research Council of Michigan does not take positions on ballot issues. In analyzing Proposal 1 on the November 8 ballot, we hope to provide more information so that voters can make better-informed decisions in formulating their votes.

On this episode of Facts Matter, research associate Dr. Esmat Ishag-Osman discusses his recent report analyzing the FY2023 City of Detroit budget.

On February 25, the city got an update of just how much money the city budget is projected to have for the next fiscal year and annually through 2026. General Fund revenues are on course to exceed September projections by modest amounts due in part to favorably adjusted income tax revenue estimates. Projections show that the city’s fiscal recovery will benefit from employment rates of blue collar workers more than any other industry group in the city, with higher educational attainment service industries growing at the slowest rate. Research Associate Dr. Esmat Ishag-Osman talks more about it on this episode of Facts Matter.

Research Associate Jill Roof discusses how Royal Oak Township provides an example of how the design of Michigan's municipal finance system has allowed certain local governments to use ad valorem special assessments to live beyond their property tax revenue raising means. However, Royal Oak's use of these assessments is largely a byproduct of the fiscal constraints placed upon it - it literally has no other revenue raising options to fund services like fire protection and garbage disposal. Local governments like Royal Oak Township may need us to review how state law governs city incorporation and annexation and how local services are funded and provided.

We were glad to see that Governor Whitmer’s budget proposals largely take this approach and, importantly, maintain a structural balance between ongoing revenues and spending. However, the governor’s plan to use the $3.6 billion School Aid Fund surplus skews entirely towards spending and misses an opportunity to pay down some of the state’s largest and most expensive debts.

February 2020 marks the one-year anniversary of the Michigan Reconnect Program and the state of Michigan has pointed out that 91,000 Michiganders are on a tuition-free pathway to attain degrees and skills for new opportunities that lead to rewarding careers.

All large cities use municipal bonds to fund capital improvements such as construction of roads, bridges, schools, highways, water and sewer systems and for other purposes. This blog provides a comparative analysis of Detroit’s debt to that of some of its peer cities. It compares Detroit against similar cities’ bond ratings and creditworthiness as a way to understand debt sizing relative to a municipal tax base and local government spending.