FOR IMMEDIATE RELEASE
Wednesday, Sept. 21, 2005
Contact: Rep. George Cushingberry
Phone: (517) 373-2276
LANSING - State Representative George Cushingberry Jr. (D-Detroit) hailed the passage by the House Tax Policy Committee of a utility tax legislation that would fund the Detroit Police Department above the current $45-million cap and would prevent additional cuts to the department.
"The Detroit Police Department has suffered enough with its recent cuts of 150 officers," said Rep. Cushingberry, lead sponsor of the bill. "This legislation ensures that the department will be sufficiently funded so it can fully protect our citizens."
The current City Utility Users Tax imposes a 5-percent levy on the use of utilities such as electricity, water, gas and phone services in cities with 750,000 residents or more. The Detroit Finance Department estimates that in fiscal year 2004-2005, revenue collections were more than $49 million.
According to the City Utility Users Tax Act, the first $45 million of revenues must be used exclusively to hire or retain police officers. If more than $45 million is collected, then the city can either roll back the rate by 0.25 percent per $2.25 million in excess of $45 million, or use the extra funds to hire and retain additional police officers in excess of the Nov. 1, 1984, employment of 3,530 officers at the Detroit Police Department.
The 2004-2005 fiscal year was the first year Detroit's department fell below 3,530 officers, but tax revenues are still above the $45 million threshold. Without legislative action, this would mean that the tax rate must be rolled back by Oct. 1, which would cost Detroit police several million dollars and forcing the layoff of an additional 115 officers.
"We have to do all we can to prevent cuts because residents must feel safe," Cushingberry said. "This bill will help ensure their safety."