Don Plusquellic provided some good news - as you're supposed to do in a state of the city address - like announce that one of Akron's largest employers, Sterling Jewelers Incorporated, will keep its headquarters in the city for another 25 years. But near the end of the speech to about 500 people, he mentioned taxes... and that in a year he's running for reelection.
Don Plusquellic: I know I've had the flu for three days but it hasn't affected my mental judgment. I know that it would be safer politically to do nothing.
Although Akron revenues have been better than most Ohio cities since 2000, Plusquellic said the city needed to make up for continued cuts in federal aid. He said the feds were better partners in the mid 70s under presidents Nixon and Ford.
Don Plusquellic: We lost an average of $4 million per year in revenue sharing that would be over $7 million in today's dollars. Or over $51 million over the last 10 years - money we didn't receive. We lost an average of $3 million per year in UDAG grants, used to keep and attract jobs.
And the Community Development Block Grant funding dropped from $10 million in 1975 to now $6 million a year. Law enforcement grants of $200,000 a year have been eliminated and so have President Clinton's COPS program that paid for beat police.
At the same time the mayor says they have cut back, dropping from 2,670 employees ten years ago to now 2,240.
Don Plusquellic: This past year, three of our bargaining units agreed to a 1% raise and no increase in medical benefits, and I commend those union leaders. We've done everything we can. We've not raised taxes for the operation of city government in 26 years.
The operative phrase there is "for operation of city government." Four years ago, Akron did raise its income tax 0ne-fourth percent but that money is dedicated to pay for construction of new schools. Plusquellic's new proposal would increase the tax rate to about 2.6% . But he argues that residents' tax burden would still be lower than a few years ago because the Federal tax rates have been cut recently by at least two-and-a-half percent.
Don Plusquellic: Help us reinvest in our future by giving back locally just a small portion of what you used to send to the IRS in Washington.
Plusquellic has spent the last few years lobbying the feds to restore revenue sharing. He met with Nancy Pelosi just two weeks ago. But he doesn't expect the new Democratic Congress will be able to find much new money.
Don Plusquellic: The needs we have to replace infrastructure and to meet the needs of staying competitive with providing the opportunities for businesses to locate here are so overwhelmingly for every local community that's why others increased their taxes years ago.
Doesn't a higher rate make you less competitive?
Don Plusquellic: Not for good business people who know they're going to get services - police when they need them, EMS. There are some people who look at the simple bottom line and they're going to end up in Mexico.
Mayor Plusquellic says the one-third percent income tax hike would raise about $17 million a year and he would earmark part of that to hire 25 more police officers.