  Ramcharger Member Username: Ramcharger Post Number: 50 Registered: 05-2006 Posted From: 68.42.78.175 |
Perhaps this is a naïve question, but what has become of all the additional tax revenue the city started collecting from the casinos beginning in mid 1999? I mean the city is in the worst financial shape in its history. The mayor can’t even balance the budget without trying to sell off large tracts of parkland. Yet, throughout the 70’s, 80’s & 90’s, as tax paying residents and businesses were fleeing the city in droves, Mayors Young and Archer seemed to be able to balance the budget without selling assets or radically effecting essential services such as police protection and trash collection. I realize that costs have increased, not the least of which are health care insurance and pensions. But, after all, the casino referendum was a very close vote; Mayor Archer didn’t even support it. What kind of fiscal condition would the city be in without those casino tax dollars? | ||
Itsjeff Member Username: Itsjeff Post Number: 6746 Registered: 10-2003 Posted From: 69.136.149.133 |
The City earns about $100 million a year in casino taxes. But out of a budget of $1.6 billion, it's not enough to offset Detroit's budget during a bad economy. Thus the layoffs and reduced services. Archer's budgets were easier because he had more to work with. A higher population paying taxes and a better local economy. (Overtime at the auto plants brought millions into coffers. There's not so much overtime any more.) Also, Archer had good relations with the Clinton White House and was able to snag more HUD funds and the Empowerment Zone, with all of its financial goodies. Archer did make two mistakes that Kilpatrick has to deal with: he hired 2000 employees that now have to be laid off, and he shortened the vesting period for employees from 10 years to 8. So after 8 years, you can quit and draw retirement. (Message edited by itsjeff on September 02, 2006) | ||
Danny Member Username: Danny Post Number: 4945 Registered: 02-2004 Posted From: 207.145.133.146 |
Where all the CaSINo taxes gone? To the rich-folks in Vegas? And not to the Mafia. | ||
Ray1936 Member Username: Ray1936 Post Number: 775 Registered: 01-2005 Posted From: 68.96.231.230 |
I'm in Vegas. I'm not rich. Maybe I should join the Mafia.  | ||
Motorcitymayor2026 Member Username: Motorcitymayor2026 Post Number: 1250 Registered: 10-2005 Posted From: 35.11.212.197 |
last year, the casinos contributed $161 million to the city budget... | ||
Lmichigan Member Username: Lmichigan Post Number: 4327 Registered: 10-2003 Posted From: 67.177.81.18 |
Thanks for the information, Jeff. I was kind of wondering how much Detroit got back from the casinos. Just imagine how much more the city would be having to scrap together a budget without the casino monies. | ||
Lmichigan Member Username: Lmichigan Post Number: 4328 Registered: 10-2003 Posted From: 67.177.81.18 |
*double post* (Message edited by lmichigan on September 02, 2006) | ||
7051 Member Username: 7051 Post Number: 20 Registered: 02-2006 Posted From: 69.214.178.136 |
Detroit was able to get the new casino laws in motion by agreeing to a freeze and initial reduction of state revenue sharing (this agreement has since been broken by the state with additional revenue sharing cuts having taken place). So rather than the casino $$ being gravy on top, it has simply replaced the initial reduction of state revenue sharing that took place in the 1990's. Addittional revenue sharing cuts have even made things more painful.... | ||
Erikd Member Username: Erikd Post Number: 715 Registered: 10-2003 Posted From: 69.242.214.106 |
The state revenue sharing agreement had nothing to do with the casinos. The city made a deal with the state to cut the city income tax and freeze the state revenue sharing. The law allowing Detroit to have 3 casinos was the result of a statewide vote. |
