Rich Spitzer, Saginaw County Commissioner, District 3, shares his insights on budget challenges, tax strategy, and efforts to revitalize the community. This conversation explores his vision for economic growth, public service, and the complexities of local government.
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District 3 Map
Contact Rich Spitzer, Saginaw County Commissioner, District 3: https://www.saginawcounty.com/departments/board-of-commissioners/commissioner-roster/district-3-rich-spitzer/
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Rich Spitzer’s Background
- Residency & Early Life: Rich has lived in Saginaw Township for 23 years. He originally grew up on the East Coast (New York & New Jersey area) and worked there for many years before moving to Michigan.
- Career in Automotive Industry: The automotive industry brought him to Michigan in the early 1990s, where he initially lived in the Detroit area.
- Business Ownership in Saginaw: In 2003, he moved to Saginaw Township after purchasing the Powerhouse Gym on Bay Road (which later moved to Green Acres Plaza). Fitness was his second passion, alongside the automotive industry.
- Community Involvement: After moving to Saginaw, Rich became active in the community, getting involved with the Chamber of Commerce and the Saginaw Township Business Association, which sparked his interest in local issues.
- Political Involvement:
- He first considered running for office around 2018 after noticing his property taxes rising significantly. His research into the county budget showed that it had doubled from $128 million in 2012 to $275 million today, which motivated him to run.
- 2020: He ran for County Commissioner but lost to an incumbent, Sheldon "Snap" Matthews.
- 2022: His district became District 3 (west side of Saginaw Township) due to redistricting. This time, he won the election by only 10 votes.
- 2024: Won by 17 votes.
- Education & Skills: He holds an MBA from Northwood University and has extensive experience in business management, having worked in Fortune 100 companies and running his own businesses.
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What Does a County Commissioner Do?
Rich explained that county commissioners oversee multiple key functions of the county government. Their role primarily involves oversight, budget allocation, and decision-making for various departments and services.
Key Responsibilities of a County Commissioner
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Oversight of Departments: They oversee the clerk’s office, elections, record keeping, courts, sheriff's office, and several other departments. Many of these departments are independently elected positions, but commissioners act as a fiduciary to ensure resources are allocated appropriately.
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Budget Control: Commissioners authorize and approve funding for different departments. However, Rich was surprised to learn that commissioners only control 1-2% of the county budget—most of it is mandated by state and federal law.
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Mandatory Funding: Some county services must be funded by law, such as:
- Sheriff’s Office & Jail (required by law)
- Courts & Prosecutor’s Office
- Public Defenders (Indigent Defense)
- Health Department & Mental Health Services
- Other state and federally mandated services
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Strategic Planning & Direction: Commissioners help set the county's long-term priorities, but their ability to control spending is limited due to legal requirements.
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Ensuring Efficiency & Effectiveness: While departments have mandates on what they must do, commissioners analyze performance and can recommend efficiency improvements. They authorize or deny specific expenditures within department budgets.
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Saginaw County Budget
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County Budget Growth Over the Past Decade
Rich Spitzer explained that the Saginaw County budget has more than doubled over the past 12-13 years, mainly due to new and increased millages.
- 2012 County Budget: $128 million
- 2024 County Budget: $275 million
- Increase: More than double in about 12 years
- Annual Growth Rate: Nearly 10% per year
Where the Money Comes From
1. Property Taxes (Main Source of County Funding)
Most of the county’s funding comes from property taxes paid by homeowners and businesses.
- Property taxes are based on the assessed taxable value of a home or business.
- The “county operating budget” section on a tax bill funds essential services such as:
- County Administration
- Courts & Jails
- Sheriff’s Office
- This core funding is around 10 mills, which means homeowners pay $10 in tax per $1,000 of taxable home value.
2. Additional Millages (Voter-Approved Taxes)
Over time, voters have approved additional millages (special taxes) to fund specific county services, adding another 10+ mills to tax bills. These millages fund:
- Sheriff’s Office patrols
- Animal Control
- Mosquito abatement
- Castle Museum
- Zoo & Dow Event Center
- Road improvements
- Health Department & Mental Health Services
Each millage may seem small individually, but over time, they stack up and increase the total tax burden on homeowners.
3. The Headlee Amendment & Its Impact
The Headlee Amendment was designed to limit property tax increases, capping them at 5% or the rate of inflation, whichever is lower.
- However, property values dropped during the 2008-2010 financial crisis, causing tax revenues to shrink.
- Since the Headlee cap prevents large tax increases, it has taken years for the county to recover lost revenue.
- The county and voters approved new millages to compensate, further increasing the overall budget.
4. State & Federal Mandates (Required Expenses)
A significant portion of the county budget is not optional—certain services must be funded by law. These include:
- Jail & Sheriff’s Office (law enforcement operations)
- Courts & Prosecutor’s Office
- Public Defenders (Indigent Defense Services)
- Health Department & Mental Health Services
- These mandates cannot be reduced, limiting the county’s control over spending.
5. Grants & Alternative Funding Sources
While tax revenue funds most of the budget, the county also secures grants and creative financing to help fund major projects. For example:
- Dow Event Center Renovations were funded using:
- State grants
- Private donations
- Creative financing to avoid raising taxes
- Mosquito Abatement Building was funded using:
- Reserves from existing millages
- Rainy day funds, allowing the county to pay in cash instead of taking on debt
Why the Budget Has Increased So Much
- Voter-Approved Millages—Over time, new millages have been added to fund additional services.
- Renters vs. Homeowners—45% of Saginaw County residents are renters who vote on millages but do not directly pay property taxes (landlords pay but may pass costs through rent).
- The 2008 Crisis & Recovery—Tax revenue declined after the housing crash, and the county relied on new millages to rebuild funding.
- State and Federal Mandates—A large portion of the budget is legally required spending, giving the county little flexibility in cost-cutting.
Discretionary vs. Mandated Spending
Rich Spitzer emphasized that managing the county budget is more complex than most people realize due to state and federal mandates restricting how funds can be allocated. While the county collects millions in property taxes, most of that money is already earmarked for specific expenses, leaving little room for discretionary spending.
1. The Reality of Budget Restrictions
Property taxes primarily fund the Saginaw County budget, but due to legal and operational requirements, nearly all of that revenue is pre-allocated.
State and federal mandates dictate spending priorities—for example, the county must fund:
- The jail and sheriff’s office
- The court system and prosecutors
- Public defenders for indigent defendants
- Health and mental health services
Rich explained that, despite having a total budget of $275 million, the county has discretion over only 1-2% of that amount. Out of the county’s entire budget, approximately $80 million is designated as "discretionary," meaning the county commission has some control over how it is allocated.
However, much of this money is already tied up in essential services that cannot be significantly reduced.
In practice, very little funding is available to shift between departments or programs. Many of these expenses are non-negotiable, and even if the county wanted to, it could not legally reduce funding for these services.
2. Rich’s Personal Experience with Budget Constraints
When Rich joined the county commission, he attempted to reallocate funds to address a court system backlog and retain prosecutors who were leaving for higher-paying jobs elsewhere.
His goal was to shift funds within the existing budget to increase prosecutor salaries and prevent further resignations. However, he quickly realized that nearly all the budget was already locked in.
After an exhaustive review of the budget, the only adjustment he could make was extending the county’s computer replacement cycle from five years to six years. This small change saved $100,000, but it was nowhere near enough to solve the court system’s financial challenges.
This experience highlighted how little discretionary funding the county actually controls.
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How Rich Spitzer Wants to Handle the Tax Burden
Rich Spitzer believes that instead of continuously increasing property taxes through new millages, Saginaw County should focus on growing the tax base and using creative financial strategies to fund essential services. His approach is centered on economic development, responsible budgeting, and alternative funding sources.
1. Growing the Tax Base Instead of Raising Taxes
Rich emphasized that the best way to generate more revenue for the county is not to raise taxes but to increase the number of people and businesses paying into the system. He sees housing development and business growth as the most effective long-term solutions.
How Expanding the Tax Base Helps Reduce Individual Tax Burden:
- More Homes = More Property Tax Revenue
- If more people move to Saginaw County and buy homes, the total amount of property taxes collected will increase naturally without raising tax rates.
- Rich wants to encourage new housing development, especially affordable and attainable (workforce housing), which would bring more residents into the county.
- More Businesses = More Jobs & Higher Tax Contributions
- Attracting new businesses and expanding existing ones would lead to higher tax revenues from property taxes.
- If more people have good-paying jobs, they can afford homes and contribute to the local economy, further strengthening the tax base.
Encouraging Development in Saginaw
Rich pointed out that Saginaw already has many advantages, such as:
By leveraging these assets and making Saginaw a more attractive place to live and work, the county can increase revenue without putting additional strain on taxpayers.
2. Strategic Budgeting & Spending Control
Rich stressed that the county needs to be more strategic with its spending. While there are essential services that must be funded, he believes there are ways to be more efficient and reduce unnecessary expenses.
Limited Control Over the Budget
- Rich explained that 90-98% of the county’s budget is legally required by state and federal mandates (such as courts, jails, and public defenders).
- The county only has discretion over a very small percentage of the budget, making cost-cutting difficult.
Example of Budget Efficiency
- In 2022, Rich attempted to reallocate funds to address a backlog in the courts but found that the only place he could cut spending was in the county's computer replacement cycle (extending it from 5 years to 6 years, saving $100,000).
- This highlights how most county spending is locked in, making it even more important to find alternative revenue sources instead of raising taxes.
3. Alternative Funding Sources: Grants & Creative Financing
Rich is a strong advocate for using grants, partnerships, and financial strategies to fund county projects without raising taxes. He highlighted successful examples where the county found money without increasing the tax burden:
- Dow Event Center Renovations
- Instead of raising taxes, funding came from:
- State grants
- Private sector contributions
- Revenue-generating strategies (long-term cost savings)
- Mosquito Abatement Facility
- A new $11 million facility was funded using:
- Existing reserves from millages
- Rainy day funds
- Cash payments instead of debt, saving taxpayers from interest payments
Rich believes that using smarter financing methods like these can help fund essential projects without additional millages.
4. Public Engagement & Accountability
Rich also wants to increase transparency and encourage community involvement in budgeting decisions. He pointed out that very few residents engage with local government, even though tax decisions directly impact them.
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Revitalizing Saginaw
Rich’s approach prioritizes long-term economic growth and smart financial planning rather than short-term tax hikes. Ultimately, Rich believes raising taxes should be a last resort. Instead, he wants to create a county where:
- People want to live and invest
- Businesses thrive and create jobs
- Essential services are fully funded without overburdening taxpayers
His goal for 2025 and beyond is to shift the county toward a self-sustaining financial model in which economic growth supports public services without constant tax increases.
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How Residents Can Get Involved
Rich Spitzer emphasized that community involvement is crucial in shaping the county’s future, especially regarding taxation, budgeting, economic development, and public services. However, he pointed out that very few residents actively engage with local government—estimating that only about 5% of people participate in decision-making processes.
Here’s how residents can get involved and make an impact: 7 Ways Saginaw County Residents Can Get Involved
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Challenges and Controversies in Public Service
In December 2024, Rich Spitzer was unanimously censured by the Saginaw County Board of Commissioners following a Facebook post about a township trustee. The decision to censure him was widely reported, with commissioners stating that his comments violated the board’s standards of conduct. [Saginaw Co. commissioner unanimously censured following Facebook post about trustee]
Rich is open to discussing the incident with anyone with questions. He says, "In the end, any public servant should be judged by the sum of their actions and deeds, particularly if they acknowledge and work to correct their mistakes."
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Extended Learning
What is a Millage (Mill)?
Rich Spitzer provided a detailed explanation of how mills work in relation to property taxes. Here's how he broke it down:
What is a Mill?
- A mill equals $1 per $1,000 of taxable property value.
- For example, if your home is valued at $100,000, one mill means you’ll pay $100 in taxes annually.
How Property Taxes Are Calculated
Assessed Value vs. Taxable Value
- Your property taxes are based on the taxable value of your home, which is often lower than the market value.
- The taxable value increases gradually each year, but it is capped under Michigan law (Headlee Amendment) at 5% or the rate of inflation, whichever is lower.
Example Calculation
Suppose your home’s taxable value is $150,000. If the county levies 10 mills for core services, you’d calculate:
- 150,000 ÷ 1,000 = 150 (mill units)
- 150 × 10 mills = $1,500 in taxes
Different Types of Millages
- The base county operating millage is around 10 mills, which funds essential services like the sheriff’s office, courts, and public health.
- Over time, voters have approved additional millages for specific services (like mosquito control, the zoo, and the Dow Event Center), adding another 10 mills or more.
- The total county millage can vary depending on where you live and what voters have approved.
Why Property Taxes Rise
- Even if home values stay the same, tax bills increase when voters approve new millages.
- Rich emphasized that millage increases are often promoted in small dollar amounts (e.g., “only 60 cents a day”), making them seem minor. However, when multiple millages are added over time, the tax burden grows significantly.
Impact of Rental Properties on Millages
- About 45% of housing in Saginaw County is rental housing.
- Renters don’t directly pay property taxes—only property owners do.
- This means landlords absorb tax increases but may pass costs along through higher rent.
- Rich pointed out that many millages are approved by voters who don’t pay property taxes, which can create disparities in tax burden.
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