An age-old problem once again returns

Hamtramck has a new mayor and a new city council.
Although they may be new, they are now staring at an age-old problem in Hamtramck: finances.
As we reported last week, the city manager recently presented some grim financial news to the mayor and council. In short, the city is spending more money than it is collecting.
Hamtramck is not alone in facing this problem.
Many older communities that have lost their manufacturing tax base from years ago, like Hamtramck, are strapped with expensive employee contracts and pension obligations.
At the same time, tax collection has stagnated. Amazingly, even though our population skyrocketed by about 6,000 since the 2010 Census, the city is actually collecting less money from income taxes than it did in 2003, according to statistics submitted by the city administration.
For the past few years the city has been burning through its budget surplus to make ends meet. This year, that money pot will run dry.
When faced with this issue in the past, the state has stepped in twice, on separate occasions, and appointed emergency managers to take control of the city’s finances. All they did was concentrate on the low-hanging fruit of where to save money, and then relied on an emergency state loan to keep the city floating for a few more years.
Yes, they left with a balanced budget on paper, but they never took a hard look at the systemic challenges Hamtramck continues to face.
Our new mayor and new councilmembers campaigned on tackling the city’s pressing issues with a fresh perspective. We can’t wait to hear what solutions are put forward.
Posted Feb. 18, 2022