Senator Switalski, under his constitutional right of protest (Art. 4, Sec. 18), protested against the passage of Senate Bill No. 191 and moved that the statement he made during the discussion of the bill be printed as his reasons for voting “no.”
The motion prevailed.
Senator Switalski’s statement is as follows:
Again, in this bill, Senate Bill No. 191, we’re asked to provide additional tax relief to people this time with incomes from $73,650 to $83,650. I just ask my colleagues, are these the people who are hurting out there? We have 11.6 percent unemployment in Michigan. We have people losing their homes and their health insurance. They are desperate. They’re demoralized. They need our help. So why are we granting tax relief to people making $73,000 to $83,000 a year?
The bill also grants additional property tax relief to households of $83,650 and below by increasing the homestead credit from $1,200 to $1,300. Now did Proposal A fail? Are rising assessments forcing people out of their homes? Have these people’s property taxes been skyrocketing? No. It’s the complete opposite. In fact, their assessments are falling. They’re getting what wise people recognize as unwelcome tax relief because their assessments are plummeting. That means the value of their homes, most people’s single greatest asset, is dropping like a rock. That brings the cold comfort of a lower tax bill, but local government is in crisis as a result of these falling values and slumping property tax revenues.
The effect of Senate Bill No. 191 is to magnify this financial crisis. How can we justify that? Is that the best use of $80 million? The General Fund is showing an $827 million deficit for fiscal year 2009. Will it improve things to move it toward $900 million?