budget

Investigative
2:35 pm
Fri January 21, 2011

State of Michigan giving more in tax breaks than it collects

I was sifting through the many reports by Gongwer News Service.  Gongwer covers just about everything that happens in and around the Lansing capitol complex.  What caught my eye was an article entitled "State Estimates Tax Expenditures of $33.8 Billion for FY'11." 

I read through the Gongwer story which linked to a 111-page report by the Michigan Department of Treasury.

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State Legislature
5:03 pm
Wed January 19, 2011

Lawmakers move to repeal the Michigan Business Tax

Replacing the Michigan Business Tax is high on the legislature's agenda
Lester Graham Michigan Radio

Senate Bill 1 has been introduced, and you can read it, in its entirety - here you go:

The Michigan business tax act, 2007 PA 36, MCL208.1101 to 208.1601, is repealed.

The bill was introduced by Senator Dave Hildenbrand and comes in advance of Governor Rick Snyder's State of the State address tonight.

Replacing the Michigan Business Tax was one of candidate Snyder's main promises to voters.

Laura Weber of the Michigan Public Radio Network filed a report on Senate Bill 1:

Senator Dave Hildenbrand...says his bill is more aggressive than a similar bill introduced by House Republicans, which only repeals part of the business tax:

"Well we wanted to send a strong message that we want to create a better business climate in this state so our job providers can provide jobs. It’s pretty clear, I think to all of us, that the Michigan Business Tax is an obstacle for employers to good create jobs, expand, for the ability for us to attract job providers to Michigan. So we’ve declared war on the Michigan Business Tax."

Governor Rick Snyder wants to replace the Michigan Business Tax with a flat tax on large businesses. Snyder is expected to talk more about his plans for economic development during his State of the State address tonight.

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Investigative
6:12 am
Mon January 17, 2011

Will cities, villages and townships lose revenue sharing again?

Lawmakers in Lansing may have to cut revenue sharing with local governments to fill the $1.8 billion budget hole.
Lester Graham Michigan Radio

The money the state sends to local governments is called revenue sharing.  But "sharing" might not be quite the right word.  It’s actually a promise, a deal the state made with the towns we live in. 

Summer Minnick is with the Michigan Municipal League.  It represents the interests of the cities, villages and townships to state leaders.  She says decades ago, local governments gave up the power to charge their own sales tax to raise money.

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Investigative
7:42 am
Fri January 14, 2011

State employees... overcompensated fat cats?

Michigan governor Rick Snyder. Snyder says cutting state worker pay is "an extremely difficult issue because you’re talking about people and their families."
Governor's office

Over the last decade, factories have closed.  People have lost their jobs. Some have had their hours cut.  Some have had their wages cut.  It’s been hard for many Michigan families. 

With so many people hurting, it’s easy to look around and get a little resentful when people who work for the government still have their jobs. 

More than 53,000 state workers --from the people who sweep the floors in the capitol to lawyers in the Attorney General’s office to engineers in the Department of Transportation-- still seem to be doing okay.

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Michigan Budget
6:39 am
Fri January 14, 2011

Estimating the state's finances

Tracy O Flickr

Lately, you've probably heard or read a Michigan Radio story that includes this number: 1,800,000,000. In case you haven't had your morning coffee yet... that's 1.8 billion. Economic forecasters predict Michigan's budget, for the fiscal year that begins October 1st, is $1.8 billion in the red.

However, later today, that figure could change. That's because economists are meeting today for what's called a "revenue estimating conference" at the state Capitol. The economists will come up with an estimate of just how much money the state can expect to receive through the next fiscal year. As the state's website explains:

The Revenue Estimating Conference held each January is a major part of the budget process. During the conference, national and state economic indicators are used to formulate an accurate prediction of revenue available for appropriation in the upcoming fiscal year. This conference first convened in 1992, pursuant to Act No. 72 of the Public Acts of 1991. The principal participants in the conference are the State Budget Director and the Directors of the Senate and House Fiscal Agencies or their respective designees. Other participants may include the Governor and senior officials from the Department of Treasury.

State Universities
6:49 am
Thu January 13, 2011

Snyder meets with university presidents

Governor Rick Snyder
Photo courtesy of www.governorelectricksnyder.com

Governor Rick Snyder met yesterday with the presidents of the state's universities.  They told the governor they are ready to help improve Michigan's economy. The Associated Press reports:

...Snyder says universities likely will have to sacrifice in the short run, but he wants to invest more in higher education when times get better. Michigan Technological University President Glen Mroz said in a statement that the meeting set a positive tone for the relationship between universities and the new Snyder administration.

Reports say Snyder did not give any specific details on what he plans to do for universities in the state's next budget. Michigan faces a projected $1.8 billion dollar budget deficit for the fiscal year that begins October 1st.

Politics
3:45 pm
Thu January 6, 2011

State employee pay targeted in budget battles

Battles over the next state budget are heating up.
Lester Graham Michigan Radio

The start of the new year often brings in a lot of talk of good will. For those in politics, it's talk of bipartisanship.

In Michigan, that spirit is likely to dissolve quickly as the state faces a $1.8 billion budget deficit in the next fiscal year (the state's next fiscal year will start October 1st, 2011).

Peter Luke on MLive.com highlights the discussion beginning to take shape among the leaders in the state legislature.

Republicans pretty much control everything in Lansing now, and the first item they say they plan to cut are salaries and benefits for state employees.

Jase Bolger, the new Speaker in the State House of Representatives, said state employee benefits are definitely on the table if the state is going to close the enormous budget deficit gap:

"There are significant dollars that need to be saved through our compensation models, not just salaries, but the entire compensation."

In his recent piece on the looming budget deficit, Michigan Radio's Lester Graham points out that slashing state employee salaries and benefits only gets them a small percentage of their overall $1.8 billion dollar goal.

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balancing budgets
1:40 pm
Tue January 4, 2011

Kalamazoo balances city budget with ease, for now…

Kalamazoo City Commission discusses the city's finances Monday night.
Lindsey Smith Michigan Radio

Kalamazoo has a new balanced budget in place…with no layoffs, tax increases or cuts to city services. City commissioners unanimously approved the 2011 budget plan Monday night.

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Investigative
5:19 pm
Thu December 23, 2010

Michigan's $1.6-billion budget hole

The $1.6-billion in cuts will have to come from the $8.3-billion General Fund. It amounts to a 19% cut.
Lani Chisnell Michigan Radio

The state budget amounts to $47-billion.  There’s a predicted shortfall of $1.6-billion in the upcoming fiscal year budget.  But, maybe $1.6-billion out of $47-billion isn't that bad.  Just cut everything by three-and-a-half percent and, Voila!  Everything’s fixed.

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Politics
10:05 am
Wed December 22, 2010

The Week in State Politics with Jack Lessenberry

Michigan Radio's Political Analyst Jack Lessenberry

It's Wednesday, the day we speak with Michigan Radio's Political Analyst Jack Lessenberry about what's going on in state politics. On tap for today: Michigan gets hit hard by bad news from the census and Governor-elect Rick Snyder says he wants a 2-year budget plan for the state.

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Lansing faces budget problem
4:07 pm
Mon December 20, 2010

City of Lansing facing $15 million budget deficit in FY12

The seal of the city of Lansing, Michigan
(photo by Steve Carmody/Michigan Radio)

The City of Lansing is facing a potential $15 million budget deficit.   City Finance Director Jerry Ambrose says there is a growing chasm between Lansing’s projected spending needs fiscal year 2012 and the city’s projected revenue. FY2012 begins June 30th, 2011.  Ambrose says the city expects to spend $118 million next year delivering city services, but city revenues are only expected to reach $103 million. Ambrose says in a written statement:

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Economy
1:49 pm
Wed December 15, 2010

Pure Michigan gets much needed cash from state

The Pure Michigan advertising campaign is getting the money it needs.   Governor Granholm today signed the legislation authorizing funds to pay for ads promoting Michigan tourism.

The Associated Press reports: 

Gov. Jennifer Granholm has as expected signed a bill that will help pay for the Pure Michigan tourism advertising campaign. The bill that Granholm announced signing Wednesday transfers $10 million to the campaign from the state's 21st Century Jobs Fund.  The addition gives Pure Michigan more than $15 million for the current fiscal and will provide enough cash to pay for a winter and spring tourism campaign. The program would have been canceled if the extra money had not been approved. Pure Michigan advocates still are pushing to raise the annual budget for the program to about $30 million.

Investigative
12:28 pm
Wed December 15, 2010

Michigan's big budget hole

Michigan Watch's Lester Graham and MPRN's Rick Pluta ask Governor-elect Snyder's Chief Strategist, Bill Rustem about the budget hole and taxes.
Steve Chrypinski Michigan Radio

The incoming governor and new leaders of the legislature know they have a lot of work ahead of them.  The State of Michigan’s finances are a mess.  After a decade of cuts to education, prisons, arts, tourism and everything else, it appears more cuts are coming.  Lester Graham with Michigan Watch reports it’s not clear what the new government leaders are going to do, but they say it begins with some tough decisions about the budget.

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WINTER
5:39 pm
Fri December 3, 2010

Counties get creative to deal with winter roads

Wayne County has outfitted its trucks to clear more snow faster, and to keep salt on the roads.
Sarah Hulett Michigan Radio

Counties all over Michigan are gearing up for another winter plowing season with higher costs and fewer resources.

Wayne County has outfitted about 20 trucks with new side plows that allow crews to make fewer passes to clear snow-covered roads.

Michael Rogers is the Roads Division director for Wayne County. During a demonstration of the equipment, he pointed out an innovation that will save on salt costs. The county has rigged up its trucks to wet the salt as it’s being spread on the roadway.  

You see the salt doesn’t necessarily make it all the way over here, to us. And that’s what you want. You want the salt to get on its intended target, and that’s what it’s doing. Because before the salt would’ve been ten feet back there, and that’s a waste of our resource.

Ten years ago, Wayne County had 726 people working for the Roads Division during the winter months. This year it has a little more than 330.

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Political Analysis
1:37 pm
Wed December 1, 2010

Lessenberry: Snyder is willing to go outside of the box

Michigan Radio's Jack Lessenberry

Governor-elect Rick Snyder named John Nixon as his new administration's budget director on Monday.  Nixon currently holds that position in Utah.

In an interview this morning on Michigan Radio, political analyst Jack Lessenberry said he thinks the pick shows that Snyder is willing to look outside of the box. Lessenberry said:

It shows that [Snyder] is certainly willing to... go outside the box and outside the state to find someone with a fresh approach to look at the all-important state budget problem. This is something that people had urged Governor Granholm to do when she first came in and which didn't happen.

Lessenberry went on to say that highly-regarded economist Charles Ballard often references Utah when discussing how Michigan could turn around its budget problems. Now, with the former head of Utah's Office of Planning and Budget becoming Snyder's budget director, Lessenberry said he is curious to see what lessons Michigan can learn. "Utah managed to balance its budget with a higher income tax," said Lessenberry, "It'll be interesting to see if that's part of the mix."

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Flint's budget woes
12:55 pm
Mon November 29, 2010

Flint firefighters voting on new contract, chances of passage "50-50"

Flint firefighters are voting on a new contract and the outcome is far from certain.    The head of the city’s firefighters union says its chances are 50-50.


 Flint firefighters are being asked to approve a new contract that will force firemen to increase contributions to their retirement plan and force them to pay more for health insurance.

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Flint's budget woes
4:18 pm
Wed November 24, 2010

Flint police officers will not get layoff notices this week

Flint police officers will not be getting layoff notices this week after all. 


 50 city workers are expected to lose their jobs to help ease the city’s budget crisis.


 But Flint mayor Dayne Walling says there will be no layoff notices sent to city police officers or firefighters this week.   He says layoff notices will be sent to Flint public safety employees after the holiday weekend, though contract talks with the city’s police officers continue.  

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Politics
6:20 pm
Tue November 23, 2010

Ottawa County consolidates two elected offices

Tight budgets are forcing local governments across the state to do more with less. That's easier said than done - even in traditionally fiscally conservative areas. Straight ticket republican voters in Ottawa County outnumbered their democratic counterparts 4 to 1 in the last election. Many self-described-fiscal-conservatives spoke out against the plan. They don't think the consolidation will save the county as much money as expected and worry services will suffer.


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Flint's budget woes
3:51 pm
Tue November 23, 2010

Layoff notices going out in Flint

 


The city of Flint has started sending out layoff notices to city employees.
But so far, none of the notices have gone out to those who work in public safety.
The city of Flint is wrestling with an estimated 5 million dollar short fall in this year’s city budget.    The mayor wants the city’s unions to absorb about half of that deficit with double digit wage and benefit concessions.

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Michigan Legislature
7:40 am
Mon November 15, 2010

Debate continues over 'Pure Michigan' funding

Little Sable Point Lighthouse, MI
David Plotzki/Creative Commons

State tourism officials are hoping to get the Pure Michigan tourism campaign back on the air-waves.

The campaign was stopped earlier this year when the state ran out of money to pay for the ads.

As Rick Pluta reports, Governor Granholm has asked the legislature to tap into a projected budget windfall as a short-term solution to pay for the ads.

Governor Granholm has said the 'Pure Michigan' campaign generates $2.23 in tourism-related activity for every dollar spent on the ads.

A poll of likely Michigan voters released earlier this month showed strong support for the Pure Michigan ad campaign.

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