Government Update Column: January 2006
Here is what the
Chamber accomplished on your behalf in 2005:
CITY OF ANN ARBOR
Emerald Ash Borer
Millage
The Chamber opposed the City of Ann Arbor Emerald Ash Borer
millage before voters on Nov. 8, and recommended that general fund reserves and
the $1.6 million budget surplus generated during fi scal year 2004-2005 be used
to address the Emerald Ash Borer infestation.
STATUS: The Emerald
Ash Borer millage went down 57 percent to 43 percent on Nov. 8. On Dec. 19, city
council voted unanimously to spend $2.1 million to remove 10,500 ash trees. The
funds came out of the city’s 2005-2006 Budget.
Personnel
Costs
The Chamber urged the city to aggressively address its health
care and benefit costs, increase the percentage of health care paid by the employee,
and adopt more competitive total compensation policies consistent with
approaches undertaken by various community employers.
STATUS: The city
has switched all employees to a preferred provider program (PPO) that saved $1
million last year, and non-union employees now pay $20 per month for singles,
$40 per month for a spouse and $80 per month for a family for health care costs. However, the city is still well behind private sector
employers, and some public-sector employers, in terms of the percentage of
health care paid by the employee. In particular, union employees (80 percent of
the city workforce) do not contribute to their health care premiums, except for
two deputy police chiefs.
WASHTENAW COUNTY
2006-2007 County
Budget
The Chamber withheld support on the county’s 2006-2007 budget.
County property tax collection is gradually shifting from winter to summer and
this shift is expected to bump county tax revenue in 2006 and 2007 and cause a
corresponding drop in 2008. The Chamber encouraged the county to set aside some
of the additional tax revenue collected in 2006 and 2007 to cover the drop in
2008.
STATUS: The County
Board of Commissioners did not agree and budgeted to spend the bump in tax
revenue in 2006 and 2007 and deal with the drop in 2008.
800 MHz Emergency RadioSystem
The Chamber supported funding a new,
$33 million emergency radio system via a countywide millage in order to
significantly improve public safety in Washtenaw County.
STATUS: The millage
may appear on the ballot in 2006.
STATE OF MICHIGAN
Single Business
Tax:
The Chamber opposed Gov. Jennifer Granholm’s Single Business Tax
proposal because it would place a greater tax burden on service industries.
STATUS: After
haggling all year, the Legislature passed legislation in mid-December that will
benefit manufacturers. The governor is expected to sign this legislation. Single
Business Tax reform will continue to be discussed in 2006.
21st Century Jobs
Fund
The Chamber supported “in concept” Gov. Granholm’s Jobs for Michigan
bond proposal and encouraged the Legislature to move it forward.
STATUS: The
legislation passed in November. Tobacco settlement funds totaling $400 million
will be invested in the commercialization of research at universities and
non-profi t research institutions, venture capital funds and a commercial lending program.
These are some of the issues the Chamber
worked for on your behalf in 2005. If your business is not a member of the Ann
Arbor Area Chamber of Commerce, you should join today. Learn more about Chamber
benefits on our Web site @ www.annarborchamber.org, call (734)
665-4433 or e-mail info@annarborchamber.org.