In each case we present both an ideal proposal and a workable alternative. Current Situation Large areas of the state budget, such as spending for K-12 education and highway construction, are constitutionally protected. CABL Proposal Remove spending priorities and mandates from the constitution. CABL Proposal Remove the current income tax rates from the constitution. Alternatively, the current tax brackets could be compressed.
Constitution permits state property tax, but currently it is levied only by local government.
CABL Proposal Remove homestead exemption from the constitution and discontinue new industrial tax exemptions. Reduce local millages proportionately, so that collections remain at current levels. Otherwise, permit the state to transfer some responsibilities to the local level. CABL Alternative Remove the homestead exemption for all future and renewal millages, and phase out the 10-year industrial tax exemption. CABL Alternative Phase higher rate down over a four-year period with no deductions for federal taxes.