The Alpena News. April 29.
No excuse for behavior of IRS
More than 8 million times during the past few months, the Internal Revenue Service’s telephone system hung up on taxpayers who wanted help. Only 40 percent of those whose calls did get through were able to talk to a human being. Many of them had to endure more than half an hour on hold before that happened.
Members of Congress who heard that report from IRS Commissioner John Koskinen last week were furious. They should be.
According to an investigation by the House Ways and Means Committee, the IRS diverted $134 million spent on customer service in 2014 to other purposes this year. Much of the money was spent so the IRS could administer provisions of the Obamacare law.
One lawmaker, U.S. Rep. Kristi Noem, R-S.D., accused Koskinen of “purposely harming taxpayers.”
Well, it certainly sounds that way. The only plausible alternative is that IRS officials were so eager to make President Barack Obama’s pet program look efficient that they spent every dime they could on it - knowing the impact that would have on customer service.
Either way, the IRS does not look good.
Ask yourself this: What would happen if the IRS called you - and you hung up on them?
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The Detroit News. April 28.
Make regional cooperation work
Gary Brown, Detroit’s group executive for operations, has called for more regional cooperation. He points to past successes such as the Detroit Zoo and Detroit Institute of Art millages and says future joint ventures can move the city and the suburbs forward.
Brown, the former city council member, stresses he’s not advocating for a regional government, but rather proposes working together on individual projects.
“Generally, in regard to specific problems, the regional approach to solving them makes sense.” Brown says. “It’s a win-win for everybody.”
He’s right. But the key to making it happen is continued and increased efforts that see both sides pursue the goal honestly and openly.
One area that Brown sees as needing immediate attention is transportation. He says Metro Detroit needs a regional transit system that has a regional funding source.
But, since that doesn’t seem to be in the picture anytime soon, Brown says he favors working out better coordination of services between the Detroit Department of Transportation and the Suburban Mobility Authority for Regional Transportation bus systems.
While Detroit at one time opted out of the regional SMART system, Brown says he’d like to see DDOT and SMART officials work together to make the systems more compatible. This could include sharing routes and devising a new payment method that riders could use on either system. He says conversations are underway on these topics.
Transportation is one issue that over the years has been divisive. But that can change. A truly regional transit system is years away but more cooperation between SMART and DDOT buses need not be.
Suburban officials say they are open to Brown’s suggestion and note they’ve always supported regional cooperation.
Macomb County Executive Mark Hackel stresses, though, he’d like to see more effort from Detroit.
“(Macomb County) is always willing to reach out to the city of Detroit,” Hackel says. “But you don’t often hear Detroit reaching out to the suburbs.”
He adds that for Metro Detroit to be successful economically, both the suburbs and the city need to prosper.
Oakland County Executive L. Brooks Patterson expresses similar views, pointing with pride to what his county has done, from supporting the Cobo Center authority and expansion of the facility to establishing Automation Alley in the metro area.
As Patterson says “if it’s good for city and suburbs, I’m for it; if it’s good for city and neutral for suburbs, I’m for it; (but) if it’s bad for the suburbs, I’m against it.”
Common sense dictates that cooperation between the suburbs and Detroit is good for the region.
And, when the universal benefits are clear, it has been supported by residents.
Brown is taking on the role of fostering more project-based regional cooperation. If he succeeds, both the city and suburbs will be stronger.
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The Holland Sentinel. April 26.
Caucus ruckus raises red flags
“What happens in caucus stays in caucus.”
Those were the words of Gideon D’Assandro, spokesperson for Michigan House Speaker Kevin Cotter, after it was reported that State Rep. Cindy Gamrat, R-Plainwell, was expelled from the party’s caucus after posting to Facebook during a confidential meeting.
Gamrat made the post in question while attending a “budget workshop.” In the post, she referenced listening to subcommittees review their budgets. She expressed frustration with achieving “free-market” solutions when the starting point is “more and more government programs being funded.”
Gamrat denies revealing anything confidential from the meeting. “I ran for office on a platform of transparency and accountability,” the statement reads, in part, and, “I may disagree on issues with my colleagues, but I respect the trust between us.”
Transparency is the big question at issue here, isn’t it?
On the one hand, politicians do need some vehicle to privately strategize, negotiate and reach consensus. On the other hand, should we be penalizing lawmakers so harshly - Gamrat was told she was no longer welcome to the weekly party caucus - even when they don’t compromise any sensitive intelligence to the masses?
The secondary consideration is how party leaders reacted to the situation.
After the whole dustup, Gamrat took to Facebook again, publishing a letter to her constituents, saying GOP leadership didn’t directly communicate with her regarding the confidentiality breach. “I was shocked and of course very disappointed to hear about these false accusations, as no one has brought such charges to my attention publicly or privately during these alleged ’series of incidents,’” she wrote on April 18.
The whole cloak-and-dagger vibe makes us wonder just what sort of system Lansing politicians are embracing. We get enough of these politics in Washington, where thoughtful debate has practically gained the mythical status of the unicorn, and rank-and-file politics rule. There’s no room for discussion even among the parties, as that might be seen as a weakness, a break in solidarity as each party tries to harness the full weight of its collective members to crush the opposition.
We’ve long bemoaned the gridlock at the national level, but here in Michigan things seemed to be different - no doubt the benefit of having one party control the state legislature and the governor’s office.
But when we see party leaders show complete intolerance - and invoking the marketing slogan for Sin City, no less as its justification - it is cause for concern.
“Confidentiality is important to the caucus to accomplish its goals, and it’s the speaker’s job to protect that confidentiality,” D’Assandro said. “There have been concerns for a long time with confidentiality in the caucus.”
What exactly are they worried about? That the public might get an honest snapshot of what actually transpires in the back rooms of government? That we might be able to see the variety of stances lawmakers have on policies before they erect the intractable party line for the opposition?
Caucus confidentiality, D’Assandro said, “allows members to have open and honest discussions.” At least some sort of honesty and transparency is revered in state politics. The down side is that statements such as these sound like code for “we, the people are on a need-to-know status.”
Politicians often like to pay lip service that they ascribe to having a system of open government - defined as where we citizens have the right to access the documents and proceedings of the government to allow for effective public oversight. Now, we actually have a lawmaker attempting to make good on that promise, who was promptly and soundly disciplined.
It’s time for leadership in Lansing to wake up and start allowing for more free conversations to take place. Otherwise, it just looks like they have something to hide.
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The Daily News (Iron Mountain). April 29.
The big box store crisis
Dickinson County is seeking an increase in its millage rate.
A property tax increase to support Dickinson County’s operating budget and infrastructure is expected to go before voters in August.
The proposal calls for an operating levy of up to 7.6403 mills and no renewal of the current 911 levy, resulting in a net millage increase of 1.12 mills.
Once the levy is set, it remains in effect. There is no need for voter renewal.
In Tuesday’s election, Michigan State University Extension Services and 4-H are seeking new millage of 0.12 mill for five years, from 2016 through 2020.
We expect this trend to continue.
One reason may be the box store crisis, which had its beginnings in just a few areas of Michigan.
It has now spread throughout the state, and it’s costing local governments buckets of money.
In September 2010, the Michigan Tax Tribunal ruled in favor of the Target Corp., The Mining Journal of Marquette reported. That ruling cut the taxable value of its Novi store by comparing it with nearby stores that had gone out of business.
That decision has spread far and wide.
The Michigan Supreme Court in December announced it declined to hear Marquette and Breitung townships cases opposing similar tax reductions involving stores in those areas.
In Marquette Township, the case focused on Lowe’s Home Improvement Warehouse. The Breitung Township the case involved Home Depot.
The Michigan Court of Appeals had issued an opinion that decided the store Lowe’s recently had built for $10 million is valued at only $4 million true cash value, or $2 million taxable value.
In Breitung Township, local assessors said Home Depot’s taxable value for 2009 was $2,923,400; $2,914,629 for 2010 and $2,925,100 for 2011.
The Tax Tribunal ruled the 94,984 square-foot store should be taxed at $1,450,000 for 2009; $1,330,000 for 2010 and $1,187,500 for 2011.
The problem with the ruling is, by law, these big box stores must be valued by comparison to vacant stores that no longer function as if open.
According to the opinion, such stores have no “present economic income” because they are owner-occupied, so they have less value than a leased store.
A store that is no longer open is obviously has less value than one with a thriving business.
Marquette Township Supervisor Dennis Liimatta told The Mining Journal that during the recession at the time of the Target decision, many southeastern Michigan big box stores had gone out of business, and that’s what the tribunal used for comparison.
Liimatta said the most difficult aspect of the Target decision is people are being asked to suspend belief of what exists now, and to instead place the current value of a business on what it would sell for should it go out of business.
That’s ridiculous, and the cost to local governments is astronomical.
The Breitung Township School District, Dickinson County, Dickinson-Iron Intermediate School District, Bay College, Dickinson County Library, Dickinson County senior citizen centers, Dickinson-Iron Health Department, Dickinson County Road Commission, and Dickinson County 911 Center all stand to lose thousands in tax revenue.
Dickinson County Equalization Director Sid Bray recently listed the amounts owed back to Home Depot from each entity for the six-year period from 2009 through 2014.
Amounts are $220,954 from the Breitung Township School District (including operating funds and debt levies); $60,162 from Dickinson County; $40,402 from Breitung Township; $20,961 from the Dickinson-Iron Intermediate School District; $9,830 from Bay College; $8,607 from the Dickinson County Library; $3,932 from the senior citizen centers; $3,671 from the Dickinson-Iron District Health Department; $2,517 from the Dickinson County Road Commission; and $1,316 from the Dickinson County 911 Center.
State Sen. Tom Casperson, R-Escanaba, says that finding a solution to the issue is a priority.
He introduced Senate Bill 511 in September 2013 to deal with property tax assessments considering “existing use” of properties. In the Michigan House of Representatives, Rep. John Kivela, D-Marquette, introduced a similar bill with the sponsorship of Rep. Ed McBroom, R-Vulcan, Rep. Scott Dianda, D-Calumet, and 26 others.
After Casperson had talked to various stakeholders, he determined that the bill would only solve part of the dispute and create additional problems.
The bill didn’t go anywhere.
Casperson is now working on new legislation.
Making the tax tribunal/big box a statewide issue, garnering support from the Legislature and getting people to put pressure on Gov. Rick Snyder’s office is needed to turn the tide, Liimatta said.
After all, the governor makes appointments to the tax tribunal, he said.
That’s your cue. Talk to your lawmakers, talk to the governor. Tell them they must find a solution to the big box store crisis - now.
“I think it will require a legislative solution,” Liimatta said. “(But) how long can we wait?”
Until then, we will likely continue to see local governments struggle.
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