Saginaw city leaders won voter support Tuesday to renew one of their main methods to avoid the full impact of 1979 property tax limits, and now they stand ready to again pursue getting rid of the caps for good.
The decision to maintain a 7.5-mill special assessment for police and fire services was 2,882 in favor, 1,356 opposed. This levy is not subject to the 45-year-old freeze, and provides money to avoid laying off 20 more police officers and 10 more firefighters.
Other actions to avoid the full downsize from the ’79 caps have included:
- Raising the city income tax by 50 percent, and reducing deductions by 30 percent.
- Adding a separate tax for trash, and then switching to an annual fee.
- Transferring Civic Center ownership to the county.
- Switching the bus system to a non-profit transit authority.
Therefore, it is false that city operations are “living on a 1979 income,” as tax cap opponents often have asserted through the years, most recently Mayor Brenda Moore in her 2024 State of the City address.
Still, Saginaw’s general fund, non-ARPA budget has lost ground to inflation, which is why leaders consider tax-freeze dodges — like the special assessment renewed Tuesday — to be mere Band-Aids on the problem, which is the tax limitation. Moore’s predecessor as mayor, Floyd Kloc, is leading a citizens committee that could seek a revoke-the-freeze referendum as soon as this year’s presidential election, or possibly early in 2025.
A somewhat similar scenario is taking place with Saginaw Township, where voters Tuesday renewed 18 mills on businesses only, 5,882 to 3,486. Now the task returns to seeking additional funds for building upgrades, after landslide rejection of an initial plan last May.
National politics
Even with the tax votes in the city and the township, and several smaller communities, Tuesday’s ballot was mainly a presidential primary to nominate candidates among the Republican and Democratic parties.
Donald Trump defeated Nikki Haley on the GOP side, 14,424 to 4,565. Among Dems, President Biden received 11,629 votes against 1,403 for “uncommitted,” which reflects discontent among some supporters with his leadership, most recently regarding Israel’s bombings of Palestinian civilians in response to the Oct. 7 Hamas terrorist attack.
To view Tuesday’s local vote totals, click here.