ADOPTED - MARCH 23, 2004

Agenda Item No. 14

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION OPPOSING HOUSE BILL 4234

RESOLUTION #04-84

WHEREAS, the Michigan Legislature has been presented with a proposed budget for 2004-2005 which addresses a deficit of $1.3 billion; and

WHEREAS, this deficit is a long term problem generated by a structural imbalance between the states tax structure and the level of governmental services funded historically; and

WHEREAS, as a result of this imbalance, state spending has been reduced to the level of spending equivalent to governmental spending in the1970's; and

WHEREAS, as a result of addressing this deficit, state shared revenues to Ingham County have been significantly reduced, without a corresponding reduction in requirements to provide services; and

WHEREAS, HB 4234 (H-1) would grant a $3,000 personal property tax exemption for 2005, $6,000 for 2006, and $10,000 thereafter, thus reducing property tax revenues to Ingham County by nearly $500,000 annually when fully phased in; and

WHEREAS, no evidence has been presented to substantiate that such an exemption would result in any significant increase in employment or other indicators of economic development; and

WHEREAS, the Ingham County Board of Commissioners believes that such a reduction, especially in this time of financial distress to all levels of government, is unwise and inappropriate.

THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners opposes HB 4234 and urges its legislators to defeat its passage.

BE IT FURTHER RESOLVED, that the County Clerk is directed to send a copy of this resolution to the County's legislative delegation, the Governor, and the Michigan Association of Counties.

COUNTY SERVICES: Yeas: Swope, Thomas, De Leon, Hertel

Nays: Severino, Nevin Absent: None Approved 3/16/04

FINANCE: Yeas: Lynch, Dedden, Thomas, Minter

Nays: None Absent: Grebner, De Leon Approved 3/17/04