As Auto Industry Teeters, Bay City and Area Ponders its Future
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A Sign of the Times?
Near the Bay City Mall on Sunday, December 7, 2008, a man carried a sign saying: "Will Work for Food and Diapers."
Motorists driving by gaped in wonder, not having seen such a message for at least 25 years.
That indication of desperation creeping into the lives of people supported by the Bay area economy tells the story.
I wish I could give you better news, but we cannot sugar coat the current situation and it wouldn't be fair or believable.
General Motors will never be the same.
Neither will the economy of Bay City and the tri-city area.
The future of the GM PowerTrain plant appears to be riding on the Chevy Volt project that has some traction while Congress is poised to give a thumbs up or thumbs down to several million workers on the loan request by automakers.
Southern members of Congress like Republican Senator Richard Shelby of Alabama appear to be aiming to wipe out the United Auto Workers if they can by sinking the economy of the nation deeper into its current morass.
There seems to be no thought of the common good of the country that should be the main consideration.
The battle seems to be between the non-union Japanese and other foreign automakers that are located in the South and the unionized plants of the North. And you thought the Civil War was over!
The Consumers Energy proposed $2.3 billion expansion is still awaiting environmental determinations. Clean coal is under constant attack by environmentalists who don't realize China's continued expansion of coal plants trumps any small gains we could make by eliminating them. Meanwhile, our economy suffers from shortage of power as well as investment and jobs.
Things are so tough many private clubs and organizations are hurting and some will undoubtedly close. Among the clubs reportedly struggling are the Bay City Country Club and the Bay City Elks Club. The Saginaw Club has been forced to sell the valuable paintings off its walls, one reportedly bringing about $500,000. Memberships are down in all organizations.
Casinos are laying off workers and traffic is reportedly down. However, some hard bitten gamblers continue to hope they can strike it rich.
Tourism here may get a boost if a Maritime Heritage Center and WaterPark project on the old Industrial BrownHoist site moves ahead. We got more comments on our recent story on the WaterPark idea than any recently run on MyBayCity.com. A strong strain of skepticism about visitor projections was revealed by several respondents.
A U.S. Navy decision on the USS Edson is expected to come in the early spring and the ship could be in place and drawing visitors by fall.
A record number of home foreclosures was reported through November in 2008 by the Bay County Register of Deeds. The figure of 481 is projected to climb over 500 when final figures are in.
In Bay City, a wave of protest is being forecast because taxpayers have received bills 4.4 percent higher despite a drop in home values up to 20 percent.
The city Board of Review meets Tuesday to correct errors and consider principal residence exemptions and poverty exemptions. Property values will not be addressed until March Board of Review meetings.
Bay County Equalization has done a residential sales study showing a decrease in assessed value of 5.68 percent. However, the taxable value of homes is going up based on an increase in the Consumer Price Increase (CPI).
"This will confuse and upset many taxpayers because while values are decreasing, the taxes being paid are increasing," said City Manager Robert V. Belleman. "Several bills were put before the legislators to change the way taxable value is calculated in decreasing markets, but nothing has been put into law at this point."
Meanwhile, mortgages (home sales) are down to 3,349 in 2008 from 4,907 last year and a high of 12,313 in 2003. Those declines are reflected in state revenue from home sales this year of $1,000,916 from $1,501,432 last year. County revenue is down from $18,557 in 2005 to $10,242 so far this year. Those figures are based on revenue stamp taxes of $7.50 per thousand for the state and $1.10 per thousand for the county assessed against home sales totals.
Latest figures from the state show the Michigan unemployment rate at 8.6 percent, Bay City 7.8 per cent, Saginaw 8.8 percent and Flint 10.9 percent. Midland's rate was 6.5 percent while Clare was 12.2 percent, Arenac 11.7 percent, Ogemaw 9.2 percent, Roscommon 11.2 percent, Gladwin 12.2 percent, Iosco 10.3 percent and Montmorency highest in the state at 14.0 percent.
In 2007, Michigan was one of only 10 states that taxed working families living in deep poverty, a new report concludes. The report by the Center on Budget and Policy Priorities, a Washington D.C.-based policy group, named Michigan as one of the worst states for taxing those at the low end of the income ladder.
It is one of nine states to tax a two-parent family of four earning less than three-quarters of the poverty line ($15,902), and one of just six to tax a single-parent family with two children earning less than three-quarters of the poverty line ($12,398).
The picture should brighten, however, when Michigan families pay their 2008 taxes early next year. For the first time, they'll be able to claim the Michigan Earned Income Tax Credit (EITC), which was signed into law in 2006.
"There's a silver lining in this report," said Sharon Parks, president and CEO of the Michigan League for Human Services. "Our status as a state that overtaxes the poor should improve in future years because of the Earned Income Tax Credit. This reinforces the need for the tax credit -- and the need to make sure it stays in place as we face another tough year and lawmakers look for ways to cut the budget. We will be anxious to see next year's ranking."
In the next month or two local residents will be hearing more about what is happening in Washington that may help the auto industry and perhaps paint a brighter picture for the local economy.
In the meantime check your tax bills and get ready for the Board of Review in March.
And, keep your powder dry to keep the wolves from the door. It's going to be a tough, cold winter.###
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