Detroit 2010 census

Michigan Municipal League / Flickr

Detroit is among a group of dozens of cities that could challenge 2010 census numbers according to the Associated Press.

DETROIT (AP) - Gov. Rick Snyder is preparing to sign bills that will allow the city of Detroit to continue its income tax and utility user tax provisions.

Snyder is scheduled to sign the bills Thursday.

The main bill would allow Detroit to continue a 2.5 percent city income tax rate on resident individuals, higher than allowed in other Michigan cities.

Changes in state law are necessary to continue the tax rates because of Detroit's declining population.

Census statistics show that Detroit's population fell to 713,777 last year. The decline puts Detroit in danger of losing allowances in state law reserved for cities with a population above 750,000.

The bills to be signed by Snyder would lower the population threshold to 600,000 so Detroit still qualifies for the tax provisions.

Patricia Drury / Flickr

Update 5:07 p.m.

The Michigan Public Radio Network's Laura Weber reports that most Republicans voted against the change, but Republican House Speaker Jase Bolger was not among them.

He voted for the measure, which passed by a narrow margin:

"I think for a healthy Michigan we have to have a healthy Detroit, so House Republicans put up enough votes for passage and we advance this bill forward today," said Bolger. "But at the same time, we are certainly concerned about containing their expenses and not looking for additional revenue."

Weber reported that changes to the population requirement now goes to the State Senate, where Democrats hope to have them approved in the next week.

1:23 p.m.

State law stipulates that a city must have a population of at least 750,000 people in order to tax at certain rates.

In the last census, Detroit's population fell below that threshold and now stands at 713,777 according to official U.S. Census statistics (that number is being challenged).

The city could stand to lose $100 million if it had to lower it's income tax rate.

Losing this much revenue in Detroit would hurt, so lawmakers in Lansing are working to pass legislation that will allow the city to keep taxing at current rates.

The Michigan State House approved a measure today that would allow the city to continue levying taxes on income and utilities by lowering the population threshold to 600,000.

The Michigan Public Radio Network's Laura Weber reported on this last night. Weber spoke with State Senator Bert Johnson (D - Detroit) about the bill. From Weber's report:

He says he thinks that 600,000 is a safe and low-enough number.

“You know, I think Detroit’s days of really hemorrhaging people are probably behind us. We’ll lose a few more along the way, but not in the significant numbers that we’ve seen over the past decade,” Johnson said.

Detroit Mayor Dave Bing said the city would likely face a financial emergency without changes to the law.

comedy_nose / flickr

Officials with the U.S. Census Bureau warned Detroit City Council members today that challenges to the ten-year Census results are rarely successful.

Detroit is hoping to add 36,000 people to its total. But in 2000, only 2,700 people were added to the rolls after all challenges in the country were complete. That’s 2,700 people in a nation of 281 million people.

Hanneorla / Flickr

Detroit Mayor Dave Bing says he wants a recount of Detroit’s 2010 census numbers. That data shows the city with its smallest population since 1910.

Bing says he thinks census numbers that fix Detroit’s population at just under 714,000 are wrong.

 Bing says a recount could turn up as many as 40,000 more residents. That would put the city above a key 750,000 person threshold.