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The pothole problem of 2014: Grand rapids

The pothole problem of 2014: Grand rapids. By: Courtney Schafer & Johanna Dreitzler. Issue Introduction. The current 5 year temporary income tax increase of Grand Rapids is set to expire in 2015

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The pothole problem of 2014: Grand rapids

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  1. The pothole problem of 2014: Grand rapids By: Courtney Schafer & Johanna Dreitzler

  2. Issue Introduction • The current 5 year temporary income tax increase of Grand Rapids is set to expire in 2015 • With the help of this money, the local government has accomplished a lot thus far, but we now face a new issue involving our roads and sidewalks. • Although the State should be responsible for road repair, cuts in funding have put a large portion of the financial burden on Grand Rapids. • A special election is being proposed for May to continue the tax increase for 15 more years. • election will cost $80,000 extra

  3. Why is this an Issue? • A streets task force has been studying the roads issue of Grand Rapids for the last year. This group has determined that the money would be enough to get 70% of city streets in “good to fair” condition. With no new investment, the task force says 87% of city streets will be in “poor” condition by 2019.

  4. Who is Impacted? Impacts on Local Government Impacts on Public/Nonprofit Org. • Overwhelmed with complaints • Do not have necessary funds to repair • Bad reflection of community appearance to tourists, outside businesses, and investors • The Rapid Bus System • Wear and tear on vehicles • Safety issue • Behind schedule/poor service • Any downtown business • Potentially losing customers/investors • Delayed delivery of goods

  5. Impact on Grand Rapids citizens • Wear and tear on vehicles • Safety issue • Financial burden • Alternate routes often require longer commutes

  6. Who/What Impacts the Budget Issue? • State Budget • Citizens of Grand Rapids • Other urgent programs • Roads may not be top priority to fix

  7. Option 1: Renew Temporary Income Tax Increase • Pros • City residents will not have to pay for sidewalk repairs • Fix the problem before it gets too expensive to fix • Cons • Tax was supposed to be temporary, many people are upset • Required to pay tax increase for 20 years in a row

  8. Option 1: Renew Temporary Income Tax Increase • Increase in income tax rates to 1.5% from 1.3% for residents • If you make $50,000 per year, live in Grand Rapids • Before tax increase you pay $650 annually • After increase, you pay $750 • Increase to 0.75% from 0.65% for non-residents working in the city • If you make $50,000 per year, work in Grand Rapids • Before tax increase you pay $325 annually • After increase, you pay $375

  9. Option 2: Property Tax • Residents of Grand Rapids would be required to pay percentage based on assessed value of real estate • Pros • Generally consistent funding • property values do not fluctuate drastically over short period of time • Can vote on how long millage will last • Cons • Only residents are required to pay millage • Other millages currently in effect making it hard for residents to distinguish how much money goes towards each issue

  10. Option 2: Property Tax • According to the County Road Association of Michigan (CRAM), 21 of the state’s 83 counties currently have a millage to pay for road maintenance. • 16 are for 1 mill or less • 4 are for 1 to 2 mills • 1 has a 5 mill levy. • Duration ranges from 4 to 15 years

  11. Option 3: Increase State Gas Tax & Vehicle Registration Fees • Raise tax from 19 cents to 33 cents per gallon. • Cost the typical Michigan family about $120 more each year per vehicle through higher fuel taxes and registration fees. • Pros • Smaller financial burden on Grand Rapid’s residents • Will not require residents to pay a one-time lump sum of money- costs will be spread out over time • Cons • Will not cover entire costs to fix issue • State-wide distribution, not Grand Rapids specific • Even higher gas prices

  12. Option 4: Toll Roads • Pros • People who use the roads will be paying for them, those who don’t will not • Standardized way to ensure whoever uses the road pays, not just people who live/work in Grand Rapids • Will not require residents to pay a one-time lump sum of money- costs will be spread out over time • Cons • People may avoid these roads to avoid paying the toll • Could cause some businesses to lose customers • Congestion on already busy streets • Very high start-up costs for project

  13. Our Recommendation • It is necessary to solve this problem. If nothing is done, money will eventually have to come from somewhere and other projects/departments may see financial cuts. • We propose another temporary income tax increase. • We eliminated raising a millage because only residents would be required to pay. All people using the Grand Rapids roads daily should pay for their upkeep. • We eliminated the state gas tax increase because it would not solve our issue financially. • We eliminated toll roads because it would cause major congestion on roads and outrage from citizens of Grand Rapids. It would also require demolishing certain neighborhoods.

  14. Steps to Implement Solution • Steps are already being taken to renew the income tax increase, holding an election in May to vote on the particular issue. • If proposal fails, money to fix the roads will have to come from somewhere else. Funding from other projects will likely be cut, such as police/fire funding. • If proposal passes government will be responsible for informing citizens, implementing tax, and seeing that the tax money is collected and budgeted for road maintenance.

  15. References Aupperlee, Aaron. "Question of the Day: Will You Pay More?" The Grand Rapids Press. N.p., 08 Feb. 2013. Web. 16 Mar. 2014. http://www.mlive.com/news/grand-rapids/index.ssf/2013/02/question_of_the_day_ok_to_pay.html "City of Grand Rapids." Income Tax. N.p., n.d. Web. 16 Mar. 2014. http://grcity.us/treasury/Income-Tax/Pages/default.aspx "City of Grand Rapids Preliminary Fiscal Plan." City of Grand Rapids. N.p., n.d. Web. 16 Mar. 2014. http://grcity.us/Documents/FY2013%20Prelim%20Fiscal%20Plan.pdf "Grand Rapids Considers Extending Income Tax Hike to Pay for Road Improvements." Michigan Radio. N.p., n.d. Web. 16 Mar. 2014. http://michiganradio.org/post/grand-rapids-considers-extending-income-tax-hike-pay-road-improvements "GR Roads Tax: ‘Temporary’ vs Necessary." WOOD TV. N.p., 12 Feb. 2014. Web. 16 Mar. 2014. http://woodtv.com/2014/02/12/gr-roads-tax-temporary-vs-necessary/ "Income Tax Opponents in Grand Rapids." The Grand Rapids Press. N.p., n.d. Web. 16 Mar. 2014. http://www.mlive.com/news/grand-rapids/index.ssf/2014/02/income-tax_opponents_in_grand.html Oosting, Jonathan. “Gas Taxes in Michigan.” Mlive.com. N.p., n.d. Web. 16 Mar. 2014 http://www.mlive.com/politics/index.ssf/2013/02/gas_taxes_in_michigan_where_do.html Thelen, Tom. "Ionia County Exploring Road Millage Option." Lansing State Journal. N.p., 28 Feb. 2014. Web. 14 Mar. 2014. http://www.lansingstatejournal.com/article/20140302/PORTLAND01/303020009/Ionia-County-exploring-road-millage-option

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