Reversing population loss without more investment in schools, infrastructure, clean water, and other public goods will be nearly impossible
LANSING – Back in 1978, the efforts of a small group of men, including longtime political consultant Patrick Anderson, culminated in the passage of the Headlee Amendment, which changed Michigan’s Constitution regarding a number of state and local tax issues. Primarily, it put limits on property tax assessments that effectively capped the amount of revenue the state could collect.
Along with Proposal A, which was enacted in 1994, Headlee has “limited local government revenue, in some cases, to the point where it contributes to budget constraints. With revenue growth limited, even local units that have been fiscally conservative are finding themselves facing uncertain budget situations.” Over time, this funding formula has proven to be insufficient when it comes to meeting the needs of Michigan residents – which has been reflected, for example, in our state’s declining rates of educational achievement.
This week, Anderson’s comments in an article published in Bridge Michigan seemed to gloss over widespread agreement by economic experts that without reforms such as closing the dark stores loophole, polluter pay provisions, or increasing taxes on wealthy corporations, Michigan will face a perennial revenue shortfall, leading to ongoing cuts in popular public programs and services.
The Fund MI Future coalition has implored elected leaders to push back against Anderson’s insistence that policymakers must maintain the status quo in our state’s approach to taxation and economic development despite the public popularity of revenue-raising reforms.
And therein lies the disconnect for those who think Michigan can continually cut its way to prosperity, said Imani Foster, Director of Research and Communications for 482forward and a member, along with Anderson, of the Growing Michigan Together Council’s PK-12 workgroup.
“The cold, hard fact is this: it will be nearly impossible to reverse Michigan’s population loss without any new revenue to fund public goods like schools and roads,” Foster said. “People want to live in cities that invest in working families with basic amenities like functional transit, great schools, adequate childcare, programs for seniors, and a stable infrastructure. Those amenities are funded through revenue, and we’ve already seen the damage caused by the perpetual tax cuts enacted under decades of Republican rule. If we’re serious about creating a bright future for Michiganders, then we need to get serious about revenue reform.”
It’s no surprise that Anderson, one of the architects of the Headlee Amendment, does not want to see change, said Fund MI Future Executive Director MoReno Taylor II. According to this week’s article in Bridge, Anderson said overhauling Michigan’s funding formula would be too radical and said that the state can’t change how it funds schools until performance improves. However, Foster and Taylor pointed out that investment in Michigan’s students is required in order to improve performance.
“Anderson’s perspective simply doesn’t meet the moment,” Taylor added. “We can’t just put our heads in the sand and ignore reality as we continue with the same funding formulas that are blowing holes in municipal budgets and unfairly burdening the middle class with the same tax rate that the wealthy pay.”
He also noted that corporations only contribute about 3.5 percent of the revenue in our state budget, while taxpayers cover 85 percent.
“Contrary to Mr. Anderson’s assertions, there is nothing radical about demanding that our tax dollars go toward the resources our families need to thrive,” Taylor added.
Fund MI Future is a joint effort of grassroots community organizations, labor unions, and policy/research experts working to create shared prosperity for all Michiganders by fully and equitably funding our public services like schools, roads, and clean water.
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