In August, Detroiters will be asked to vote to extend, for another decade, a Detroit Public Library millage that generates the vast majority of its operating budget. If approved, the proposal to renew the millage could mean more money for library coffers.
So-called Proposal L, if passed, would keep the Detroit Public Library's doors open, funding building operations, maintenance and staff, according to the library. Detroit's library system — the second largest in Michigan — includes the main location in Midtown and 21 neighborhood branches.
"It's 85% of our operating budget. If it passes, then we are going to continue for the next 10 years to provide services — valuable services — to citizens of Detroit. If it doesn't pass, then we'll be shut down and then you won't have a library system in Detroit," said Atiim Funchess, assistant director of marketing and communications for the Detroit Public Library.
If the proposal before voters passes, the Detroit Public Library's renewal millage of 3.9943 mills would be exempt from certain tax captures — a major change that could add about $3.2 million next fiscal year to the library budget. The extra revenue would have a significant and positive impact, allowing the library to address deferred maintenance, improve buildings and bolster programming, Antonio Brown, the Detroit Public Library's chief financial officer, said.
The Detroit Public Library has been at the center of contentious discussions over tax captures, a part of tax increment financing (TIF), which is a financing method that allows local governments and their downtown development authorities, under state law, to capture a slice of property taxes for economic development projects. Detroit library officials in the past have rebuffed the practice, saying it eats into the library's budget, hampering its operations and services. The library tax captures increased from $3.4 million in the 2022 fiscal year to nearly $4 million in 2023, according to data provided by the Detroit Public Library. The library's fiscal year is July 1 through June 30.
Here's what Detroiters should know about the proposal ahead of Aug. 6:
What is Proposal L?
Proposal L, if passed, would reinstate the current property tax of 3.9943 mills, or $3.9943 per $1,000 of taxable property value. This means that for a home with a taxable value of $40,000, homeowners would be paying about $160 per year in property taxes.
The renewal, according to the library, combines two millages voters approved in 2014 which ends June 2025. If approved, the 3.9943 mills would generate an estimated $42 million in revenue in its first year.
How does the millage impact the library?
Funding from the millage is crucial to keeping the library open, paying for staff, building operations, maintenance and security, according to Funchess. The library's budget for the 2025 fiscal year, which began July 1, is roughly $38.9 million.
The Detroit Public Library is the "technical hub" for the city, he said, providing access to computers and the internet.
"It would be devastating to the neighborhood if the library is no longer available," Funchess said.
The Detroit Public Library is an independent municipality, governed by the Detroit Library Commission, but relies on the city of Detroit as its fiduciary to collect property taxes and distribute them to the library for funding. Every 10 years, Detroiters are asked to review and reapprove the library's millage. Detroiters last approved the millage in 2014.
What are tax captures?
Tax increment financing allows entities, including downtown development authorities and brownfield redevelopment authority, to capture increases in property taxes to fund projects, such as cleaning up blighted properties or promoting a downtown business district, according to the Southeast Michigan Council of Governments (SEMCOG).
The Citizens Research Council of Michigan notes that incremental taxes may be captured fromcounty taxes, school taxes, community college district taxes, and taxes levied for libraries and parks.
The Downtown Development Authority (DDA) is among the entities that has been capturing incremental property tax revenue from the Detroit Public Library. In the 2023 fiscal year, the DDA captured $3.3 million, up from about $2.8 million the year before, according to library figures.
Critics of tax captures say the financing tool harms public institutions, like libraries and schools, when the money could instead go to residents and neighborhoods.
"Taking hundreds of millions of dollars away from city resources that could be used for neighborhood projects and used for home repair programs and so forth — that money is being given away," said Russ Bellant, a former member of the Detroit Library Commission, who served for 12 years, and co-organizer of Detroiters for Tax Justice, a citywide citizens' organization.
Will the millage be subject to tax captures?
If Proposal L is approved, the renewal millage of 3.9943 mills would be exempt from DDA tax increment capture per state law, according to the city of Detroit's Office of the Chief Financial Officer. However, a permanent millage of about 0.64 mills will continue to be subject to DDA capture, but that amount is "not a significant portion of loss of potential revenue," Brown, of the Detroit Public Library, said. Both of those library millages would also be available for brownfield redevelopment tax capture.
"The loss of these funds will impact our ability to invest in Detroit’s development. While the DDA will honor existing commitments, we will have less funding available for new projects and initiatives to boost our local economy," said Lanard Ingram, senior director of marketing and communications, for the Detroit Economic Growth Corp., which staffs the DDA, in an email.
He said that the DDA has revitalized downtown Detroit by boosting the economy and creating jobs. He cited the transformation of Campus Martius Park as a popular attraction and the preservation of the Book Tower, because it has "expanded housing options and the tax base." The DDA, he said, supported infrastructure improvements, most recently during the NFL draft.
"Reduced funding will limit our investment capacity in Detroit’s development. ... While we don’t have exact figures available at the moment, this will impact our projects," Ingram said.
Bellant said that while the exemption from DDA tax captures of the renewal millage would be a "welcome development," he expressed concerns about increasing tax captures by other entities like the Detroit Brownfield Redevelopment Authority. From the 1999 fiscal year to 2023, the brownfield tax captures totaled approximately $3.5 million, according to library data.
The Detroit Public Library is subject to property tax captures under four Michigan statutes. The funds can go toward central business district development, job creation, redeveloping blighted areas and unused buildings and preserving residential property values in a historic district, according to a 152-page 10-year financial review of the library by Detroit City Council's Legislative Policy Division.
Because of the complex nature of the law, the library has taken the "conservative route" and created a balanced budget under the assumption that tax captures would continue, Brown said.
"Should it prove that we are not subject to tax captures, then we would adjust our budget accordingly," he said.
Eric Lupher, president of the Citizens Research Council of Michigan, said the NFL draft and high-profile activities in downtown Detroit speak to the success of investments made in the area.
"There's going to be continued need for the DDA to operate but I don't think they can argue that they are resource constrained in any way. The tax capture is significant and is growing and will continue to grow. Losing the library millage from what they can capture ... is not insignificant, but they'll do just fine," Lupher said.
Which libraries are currently open?
Currently, 18 of the Detroit Public Library's 21 branches are open. The three closed branches are Conely in southwest Detroit, Skillman in downtown and Monteith on the far east side of the city.
Monteith, which is an older building that had fallen into disrepair, needs more than $6 million in remediation work. Skillman is in the construction zone of the Hudson site. Conely has some water damage, Funchess said. The aim is to reopen the Conely branch by the fall.
Contact reporter Nushrat Rahman: nrahman@freepress.com. Follow her on X: @NushratR.
Sophie Hanawalt is a 2024 Detroit Free Press summer apprentice.
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