The Michigan Chamber of Commerce today testified in opposition to legislation (House Bills 4575 and 5709) under consideration by the State House Education Committee that would greatly expand the use of sinking fund taxes by school districts. An independent analysis of these bills conducted by Anderson Economic Group (AEG) estimates that this legislation would result in a $5.4 billion property tax increase on homeowners and business property owners over the next 10 years.
"The Michigan Chamber supports adequately funding K-12 education," said Rich Studley, Executive Vice President of the Michigan Chamber of Commerce. "However, this public policy goal can and should be accomplished through the appropriations process with existing revenue.
"House Bills 4575 and 5709 would result in a $3.3 billion property tax increase on residential property owners and a $2.1 billion tax increase on industrial and commercial property owners," Studley added. "Worse yet, like the costly K-16 spending mandate, these seriously-flawed bills lack accountability, fail to guarantee any improvement in education quality and contain no cost-saving reform measures.
"During this period of economic uncertainty, working families are struggling to make ends meet and businesses across the state are struggling to survive. We strongly urge the State House to reject this counterproductive property tax increase," Studley concluded.
The Michigan Chamber is a statewide business organization which represents more than 6,500 employers, trade associations and local chambers of commerce. The Michigan Chamber was established in 1959 to be an advocate for Michigan's job providers in the legislative, political and legal process.
SOURCE: Michigan Chamber of Commerce
CONTACT: Rich Studley of Michigan Chamber of Commerce, +1-517-371-2100
Web site: http://www.michamber.com/