Uncertainty

As Ann Arbor officials consider a city income tax as a possible cure to the city's budget woes, Grand Rapids might be the best case study on how such a tax can fluctuate wildly with changes in the economy. "I see a lot of problems with it," said Ann Arbor Mayor John Hieftje. "I look at the experience of other cities, and Grand Rapids lost something like 14 percent of their income tax revenue over the last couple of years. When you have a big recession, property tax revenues might dip 2 to 4 percent, but they don't drop 14 percent like you saw in Grand Rapids." Read the story here. And the sidebar story here.