Last week we reported some good news/bad news about the GM Poletown plant.
The good: The plant will remain open.
The bad: It will be shut down for as long as two years, to retool the plant for the production of electric-powered pickup trucks.
That’s bad news for Hamtramck because, during that time, the city won’t receive the approximately $700,000 to $800,000 a year GM pays to Hamtramck in lieu of property taxes.
That is a huge chunk of change for the city, and it will be quite a hit to the city budget.
Worse, the yearly-payment-in-lieu-of-taxes deal with GM depends on how many employees are working at the plant. It is believed that the workforce will shrink when the Poletown plant resumes operation – meaning the city won’t be getting $800,000 a year even when production resumes.
We stress this again because there will be adjustments to the city budget. Those cost-saving cuts will likely upset some folks.
There really aren’t any good options.
More disturbingly, we have heard some candidates for city council vow to cut taxes – particularly the city income tax.
This is naïve at best, and at worst, outright reckless. These folks clearly do not understand how the city operates.
We are hoping those claims were empty campaign promises made to win votes. Otherwise, the city will be heading toward an even more serious financial blow.
Nov. 8, 2019