Contact: Eric Lupher
or Jill Roof 734.542.8001

CRC Analyzes Two Issues to Appear on Detroit General Election Ballot

The Citizens Research Council of Michigan has analyzed two issues scheduled to appear on the Detroit general election ballot on November 3, 2009. Proposal D proposes an amendment to the Detroit City Charter to change from the current at-large system of electing city council members to a hybrid system in which some members are elected from districts and others are elected at large. Proposal S would allow Detroit Public Schools to borrow $500.5 million for the construction and renovation of school facilities.

The analysis of Proposal D provides some historical context to the council election method, discusses the context within which these changes are proposed, describes the proposed changes, and analyzes issues to be considered relative to district or at-large elections.

"Detroiters have been asked about the preferred method of selecting city council members several times over the years," said Eric Lupher, Director of Local Affairs for CRC. "Addressing this question now will set the tone for the city charter commission that is being elected at the same election."

If Proposal S passes, DPS plans to use the bond proceeds to build eight new schools and modernize or renovate 10 schools. The analysis of Proposal S explains how the proposed bond issuance is structured to take advantage of the American Recovery and Reinvestment Tax Act of 2009. It looks at the finances of the school district, the amount of existing debt, and the unsettled governance issues that loom in the background.

"Passage of Proposal S would add to the existing debt of the Detroit Public Schools," stated CRC Research Associate Jill Roof. "Because the bonds would be issued through the State’s School Bond Qualification and Loan Program, the tax levy to repay the bonds would not escalate but the number of years the tax is levied would be extended beyond what would otherwise be the case."

The reports can be read on the CRC website, www.crcmich.org.

The Citizens Research Council of Michigan is a private, nonprofit public affairs research organization, founded in 1916 to analyze issues pertaining to state and local government organization and finance in Michigan.