City of Ferndale InterDepartmental Communication
DATE: April 4, 2006
TO: Mayor and Council
FROM: Thomas Barwin, City Manager
RE: Michigan Constitution Amendment to Provide Funding Options
for Rapid Transit
Background/Problem
For several years now, the City of Ferndale has been advocating
that the transportation system of Southeast Michigan evolve to being
truly multi-model and more balanced as we strive to lessen our
dependence on mid-east oil.
During the course of our efforts, we have learned that most of
the metro regions in the country we compete with for jobs and
investment have rapid transit components. We have also learned that
most metro areas of the country that have a balanced transit system
often utilize a regional sales tax to raise the funds necessary to
invest in transit.
Unfortunately, the Michigan Constitution severely limits
transportation funding options to the property tax, with few other
local and/or regional options that could raise the investment
capital to undertake any of the components approved in SEMCOG’s
transit vision adopted in 2000.
The potential and pursuit of transit has been severely
handicapped and handcuffed by the Michigan Constitution which is so
restrictive it does not even allow citizens to consider non-property
tax public investment in transit as a way to begin to pursue new
strategies to diversify the region’s transportation system and
economy. In short, the Michigan Constitution remains one of the
major impediments to transit.
Solution
Through our collective travels, studies, research and commons
sense, it is evident the Michigan Constitution must be amended to
afford citizens the opportunity to consider investing in transit
initiatives in the future. As we mark the 50th year since transit
was removed from Woodward, it is appropriate we strive to begin to
plant a solid foundation and future for the next 50 years, one that
includes transit as at least an option for the public to consider.
Recommendation
Michigan has been following the same development patterns for the
past 50 years and is in dire need of new strategies and tools as it
appears we have over extended ourselves with the ‘roads only’
pattern of development as witnessed by our infrastructure and
economic woes.
Therefore, it is recommended that we ask our State Legislative
delegation to introduce a joint resolution asking the Legislature to
place a question on the fall 2006 State-wide ballot, to allow voters
to consider a constitutional amendment which would allow metro
regions located within the State, no less than one county in size,
to authorize a one-half cent sales tax to fund and operate regional
rapid transit systems.
While no viable option is in place to fund transit, road funding
is also inadequate in our State which features severe winters and
heavy truck activity. Therefore, a one-half cent transit sales tax
needs to be combined and tie-barred with a one-half cent sales road
tax to begin to repair and modernize our infrastructure in a
comprehensive fashion.
If the proposed constitutional amendment described above were to
be approved by Michigan voters, the one-half cent regional sales tax
for transit investment and one-half cent sales tax for road
improvements would not be mandatory in any county, but an option or
a tool for economic developers, transportation planners and
ultimately voters to decide whether to use or not. It is a small
tool that could open the door to considerable economic development
opportunities, job and business creation. It would provide an
enhancement to our institutions of higher education, while improving
our quality of life and improving the potential for our hospitality
industry, noting an increase in tourists could help fund the
investment.
We can no longer defer consideration of these options. While some
may consider such initiatives and the notion of amending the
Michigan Constitution as described above as bold, in reality, it is
basic and mainstream in most successful and vibrant metro areas of
America. It is time we catch up! It is time to let the public weigh
in on these important strategic decisions.
Recommendation
Moved by _______________, seconded by _______________, that the
Ferndale City Council hereby requests State Senator Gilda Jacobs and
State Representative Andy Meisner to introduce a joint resolution to
the Michigan Legislature to allow the voters of Michigan to consider
an amendment to the Michigan Constitution in the fall of 2006, to
give voters within the geography of a transportation authority, no
less than one county in size, the local option of authorizing a
one-half cent sales tax to fund capital investment construction and
operating costs of a rapid transit system and a one-half cent sales
tax to fund road improvements within the geography of a
transportation authority that has also funded transit. We further
ask that this be considered a non-partisan or bi-partisan approach
to provide Michigan residents and communities with a basic tool and
choice that can help balance our transportation system, stimulate
our economy, enhance the quality of life, lessen our dependence on
mid-east oil, and take some of the pressure off of some of our
roads, and begin to provide transportation choices for the many,
many people who will need them during one or more stages of their
lives, including during periods of major road repairs. We further
encourage all businesses and sister communities to support this
vital and timely effort.
