budget

Politics
7:36 pm
Tue October 18, 2011

Governor Snyder says it's too early to think about spending Michigan's potential surplus

The state of Michigan has a projected budget surplus of around $430 million. Governor Snyder wants to wait before deciding what to do with the extra money.
Russ Climie Tiberius Images

Governor Rick Snyder says he would prefer to wait and see what direction the economy takes before making decisions on how to use a projected budget surplus.

Snyder says he is no rush to restore funding to schools or other programs.

Budget watchdogs predict the state is in line for a windfall of around $430 million once the books are closed on the fiscal year that ended last month.

Tax revenues appear to have picked up despite the lackluster recovery in jobs and spending.

Democrats have called for restoring cuts to K-12 education, but Governor Snyder said it’s too soon to make that call.

“It’s good to see positive results coming in in terms of revenues, but one of the things is the economy in the macro sense at the national and international level is pretty tenuous,” said Snyder.

Other Republican leaders have said any surplus should be put into the state’s “rainy day” savings or toward paying down long-term debt.

The governor says those options might be prudent if the state winds up with excess cash.

Politics
3:18 pm
Sat October 15, 2011

Debate begins over potential Michigan budget cash

It turns out Michigan's state government might have brought in more money from taxes and fees than previously expected in the fiscal year that ended September 30th. That likely will set up a battle this fall over what to do with
the cash, which could total $285 million or more.

Democrats, outnumbered in the Michigan Legislature, say any extra money should be committed first to public schools and education programs that are dealing with budget cuts in the fiscal year that started this month.

Republicans, including those in Governor Rick Snyder's administration, are hesitant to commit to any spending before they have a clearer picture of state revenues.

Snyder's budget office is expected to close the books on the recently completed 2010-11 fiscal year in December.

Investigative
6:00 am
Tue September 6, 2011

School supplies not required, but encouraged

Parents are not obligated to buy school supplies, but most do buy for their own kids and for the classroom to share.
Lester Graham Michigan Radio

For most Michigan kids, today is the first day back to school.  And many are taking backpacks full of school supplies. They are not required to take school supplies. By state law the public schools are to supply everything students need for class. 

When you add it all up, the new school clothes, gym shoes, and all those binders, crayons, paper, pens and pencils, back-to-school shopping is big business.

“It’s really become probably the second biggest shopping period of the year, right behind Christmas.”

That’s Tom Scott with Michigan Retailers Association. One national estimate puts back-to-school shopping at about 16 percent of retail business in a year. It’s difficult to separate just how much of that is actual school supplies and not clothes or computers. 

The school districts always put out a long list of things kids might need for school and parents start hunting.

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Politics
12:33 pm
Fri August 26, 2011

Court rules Michigan legislature illegally quashed pay raise

The Michigan Court of Appeals says the Legislature violated the state constitution by illegally taking money from state employee paychecks to cover retirement health care costs.

State employees are in line to get back $60 million dollars that was withheld from their paychecks if this decision stands.

The court of appeals says then-Governor Jennifer Granholm and the Legislature could not take three percent of state employee salaries for retirement costs after lawmakers failed to block three percent pay raises.

The pay raises were approved by the independent state Civil Service Commission, and could only be reversed by super-majorities in the House and Senate.

The appeals court said that was just another way to take away the pay raise, and violated the process set up by the state constitution.

Governor Rick Snyder says the money is needed to help cover a shortfall in the state employee retirement fund. He could ask the state attorney general to appeal the decision to the Michigan Supreme Court.

*Correction - an earlier version of this story incorrectly stated that the current Michigan legislature and Governor Snyder "adopted the plan earlier this year that requires state employees contribute 3 percent of their paychecks toward their retirement health care costs."

The plan was adopted under a previous legislature and then-Governor Granholm.

The headline has been changed as well. (previous headline "Court rules Michigan legislature and Gov. illegally quashed pay raise").

We regret the error.

 

 

Politics
3:33 pm
Wed August 24, 2011

Michigan Legislature approves new welfare limits

LANSING, Mich. (AP) - Residents involved in roughly 12,500 welfare cases in Michigan could lose benefits under a stricter, four-year lifetime limit that has received final approval in the Michigan Legislature.

The Republican-led House passed the legislation with 73-34 votes Wednesday mostly along party lines.

The measures will go to Gov. Rick Snyder.

The welfare limit already has been approved as part of the state budget that kicks in Oct. 1. Lawmakers plan to put the cap in a separate state statute to help implement the budget plan. The state's current four-year limit on welfare benefits would expire Sept. 30 unless the Legislature revises or extends the limitations.

The revised welfare limits have fewer exemptions than the four-year limit now in state law.

Debt Ceiling Debate
7:09 am
Fri July 29, 2011

State budget director cautious as debt deadline nears

Congressional Republicans and Democrats still have not come up with a way to stop a possible August 2nd national debt default

State Budget Director John Nixon says he’s unsure how Michigan will make payments to food stamp and welfare recipients and Medicaid providers if the federal government defaults, the Associated Press reports.

“Michigan draws about $400 million a week from federal funds that could suddenly dry up next week if the nation hits its debt limit and cannot pay its bills… Forty-four percent of Michigan's $45 billion budget is supported by federal funds, as are 25 percent of state workers.” the AP notes.

In an interview with the AP, Nixon says the state will do what it can to, “keep things moving.”

Meanwhile, Governor Snyder said yesterday that a possible default has him concerned:

“One of the challenges is (the federal government) haven’t told us exactly what it’ll mean. So we’re prepared for a number of scenarios.”

Lindsey Smith reports, "Snyder says Michigan could move money around to cover things like Medicaid payments until the federal government reimburses the state." Snyder said:

“I think we’re going to be in reasonably good shape, as long as it doesn’t go for an extended period of time.”

Politics
5:35 pm
Tue July 12, 2011

Tea Party Caucus and budget negotiations (audio)

Congressman Tim Walberg represents Michigan's 7th district.
US House of Representative

The divide over budget and debt ceiling talks continues between Congressional Republicans and Democrats. Within the Republican Party, the Tea Party Caucus is a prominent voice against any deal that contains tax increases.

Republican Congressman Tim Walberg represents Michigan’s 7th district and is a member of the Tea Party Caucus. He spoke with Michigan Radio's Jennifer White about what he thinks it might take for both Republicans and Democrats to agree on a budget.

Politics
4:01 pm
Sat July 9, 2011

Stabenow hopes Sunday's 'Debt Ceiling' talks will remember 'Middle Class Families'

U.S. Sen. Debbie Stabenow, (D) Michigan (file photo)
(photo by Steve Carmody/Michigan Radio)

Michigan Senator Debbie Stabenow says she hopes President Obama and Congressional leaders can strike a ‘balance’ in Sunday’s planned talks on extending the debt ceiling.  Stabenow says the President and Republicans should prioritize the needs of middle class Americans. 

“Its very concerning to me that we not see the budget be balanced on the backs of middle class families and senior citizens.”

Economy
5:25 pm
Wed July 6, 2011

Budget negotiations and the nation's debt ceiling (audio)

Capitol Hill, Washington D.C.
whitehouse.gov

The debate over the federal budget and the debt ceiling is heated, and there are very dire predictions from both Republican and Democratic leaders about what will happen if these issues aren’t resolved soon. But for Americans who are dealing with every day, immediate issues, this debate can seem distant.

Republican Congressman Mike Rogers represents Michigan's 8th Congressional District. He spoke with Michigan Radio's Jenn White about why people should care about this debate.

Congressman Rogers says these issues "impact the ability for our economy to grow and for people to get back to work."

Local Government
5:36 pm
Tue June 21, 2011

Transforming city government in Grand Rapids

Lindsey Smith Michigan Radio

Today elected officials in Grand Rapids adopted a budget for 2012. The plan closes a $6 million budget gap in the city’s general fund.

The plan includes money for a new ‘transformation fund’ – which can only be used for one-time investments in long-term structural changes.

Grand Rapids took a couple measure last year to keep their budget out the red…they laid off around 175 employees and voters approved a city income tax hike.

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Politics
4:51 pm
Wed June 8, 2011

Flint prepares to enter new fiscal year with uncertainty

(photo by Steve Carmody/Michigan Radio)

Flint's new city budget begins July first.  But it's still not clear if city employees will be laid off to make the numbers work.    The Flint city council approved the city's budget on Monday.   The spending plan is based partly on a 15% wage and benefit concession by Flint's city unions.   Concessions that the unions have not agreed too. 

Even though the new budget takes effect July 1st, Flint mayor Dayne Walling insists layoffs are not imminent.   He says decisions on possible staff cuts will be based on monthly reviews of Flint's budget situation.  

 “There is a reality that you can only spend a dollar one time.    And once that dollar gets spent…than its not available for services in January or next Spring.”   

Flint has already laid off dozens of city employees during the past year, as the city struggles with a multi-million dollar budget deficit.

Economy
2:30 pm
Tue May 31, 2011

Interview: Do Emergency Managers actually help?

flickr / joshuadavisphotography

Governor Rick Snyder passed new laws expanding the power of Emergency Financial Managers, and there’s been debate over whether or not Emergency Managers are able to turnaround the municipalities and districts they’re assigned to.

Michigan Radio’s Jenn White spoke with Gary Olsen, Former Director of the Michigan Senate Fiscal Agency and Senior Policy Fellow at Public Sector Consultants. Here is the interview:

Do Emergency Managers leave their cities or districts in better financial condition?

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Politics
4:20 pm
Fri May 27, 2011

Political Roundup

Photo by: contemplative imaging

The State Legislature completed work on a $46.5 billion state budget this week. It’s the quickest budget process since the 1960’s.

Michigan Radio’s Jenn White spoke with Susan Demas, political analyst for Michigan Information and Research Service, and Bill Ballenger, editor and publisher of Inside Michigan Politics.  You can hear the interview here:

Ballenger says  Governor Snyder had a clear plan coming into office, which helped get this budget passed so quickly. He also points to the strong Republican control.

These are the biggest margins of control since the years after World War II ended. This is how strong the majority is in the House and Senate with a Republican Governor. That is incredibly important.

Certain items in the tax structure and in this budget have gotten lots of attention from the public. Tax on pensions, the reduction of the Earned Income Tax Credit and the cuts to K-12 schools all have been on people’s minds.

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Politics
4:11 pm
Thu May 26, 2011

Budget done early, schools and local governments can plan for cuts

The State Legislature has passed a budget, the earliest a budget has been passed in decades.
user aunt owwee Flickr

The Michigan Legislature has wrapped up its financial planning for the future.

The $46 billion state budget is done - they'll start spending the money October 1st (that's when the fiscal year starts).

The Associate Press writes:

The Republican-led Michigan Legislature has finished approving a new state budget that will cut state aid for education and many state departments...The quick resolution of next year's budget is a victory for Republican Gov. Rick Snyder, who wanted lawmakers to wrap up votes by May 31.

This is the earliest the state budget has been completed in 30 years, according to the Detroit News.

Early passage gives school districts, agencies, and local governments time to plan for their next fiscal years.

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Politics
5:17 pm
Wed May 25, 2011

School cuts likley as budget rolls through Legislature

The budget is on track to be signed next week.
Lester Graham Michigan Radio

The Michigan Senate handed a complete state spending plan over to the state House today.

That leaves just a couple more steps before the budget bills go to Governor Rick Snyder for his approval.

The arguments on both sides of the aisle in the Legislature have been cyclical in recent weeks; Republicans have offered up departmental spending plans with deep cuts, and Democrats have said the cuts help businesses and hurt working poor families and children.

When talking about the K-12 schools budget, Democratic Senate Minority Leader Gretchen Whitmer said:

"Amidst a long day of voting on bad budgets, we find ourselves looking at the absolute worst of the worst."

The K-12 schools budget makes additional cuts in per-pupil funding with the possibility of offsetting those cuts by consolidating services and by encouraging other Republican-proposed “best practices.”

Overall the complaints of Democrats have had little impact on the budget process. The party lacks enough votes to get in the way of a budget that has thus-far rolled quickly through the Republican-controlled Legislature.

It appears any debate on this budget will be over by early next week.

Politics
3:10 pm
Wed May 25, 2011

Sweeping changes to Michigan's tax laws, will jobs follow?

It's official.

Governor Snyder has just signed "the most sweeping tax change in the state since 1994," according to the Associated Press:

It cuts overall business taxes by about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year and replaces the Michigan Business Tax with a 6 percent income tax on corporations with shareholders. Some of those companies will pay more, but most companies won't pay the tax.

In the Detroit Free Press, AFL-CIO President Mark Gaffney said the tax overhaul won't create jobs.

Gaffney questioned whether a small coffee shop owner who receives a tax cut would hire someone. He said that depends on more business, and more business depends on customers having more disposable income.

"I hate to think Michigan is going to be the next experiment in supply-side economics," he said. "There's a reason they call it trickle-down, it's a trickle."

The Governor's mantra has been that cutting taxes will lead to more jobs in Michigan.

When MPRN's Rick Pluta asked the Governor for empirical evidence how he knows lower taxes will lead to jobs, Snyder said, "It's basic economics in terms of cost structures. There was some polling done by the Small Business Association that actually went out and asked their members about what would you be doing with these resources and they got good feedback to say that a lot people would be looking at creating jobs."

The unemployment rate in Michigan stands at 10.2% right now - that number doesn't count the chronically unemployed - people who have fallen off the unemployment rolls.

Politics
5:12 pm
Tue May 24, 2011

Bing vows to veto city council budget

Detroit Mayor Dave Bing says he'll veto the city council's budget bill. The council budget cuts spending by $50 million dollars more than the mayor wants.

 Detroit City Council voted 8-1 in favor of their plan. But Mayor Bing says adoption of his $3.1 billion dollar budget is crucial if Detroit is to avoid having Governor Rick Snyder step in and appoint an emergency manager to steer the city out of a $155 million dollar deficit.

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Politics
5:06 pm
Tue May 24, 2011

Michigan Legislature on target to meet Governor Snyder's May 31st deadline

There’s one week left for the legislature to meet the governor’s deadline for passing a state budget before the end of May.

Governor Rick Snyder says negotiations are still on pace to wrap up by May 31st.

“There are still lots of things, because it’s a very large document, that we need to get through," Snyder said. "But that's all part of the process and it's coming along in a positive way."

Snyder says it would be acceptable if the final deal isn’t ready until a few days the May 31st deadline:

“Passing it anytime in May or June is a big success over our history," said Snyder. "So I view it all as positive. I just like to hit deadlines that we talked about. So a practical matter it would be good to get it wrapped up because there’s a lot more work to be done. So the sooner the better. And we’re on a path to get that done."  

Snyder and Republican legislative leaders announced a deal last week that settled many of the larger budget issues including the size of funding cuts for education.

Democrats complain that they were left out of budget negotiations.

Politics
4:50 pm
Tue May 24, 2011

Budget bills start rolling through Senate

The Republican-led state Senate has started approving parts of the budget.

That includes a bill that cuts funding for public universities by 15 percent.

Universities could face bigger cuts if they don’t hold tuition increases at or below 7.1 percent.

Democratic state Senator Morris Hood says tuitions are already too high.

"Our profound disinvestment has led to tuition increase after tuition increase, making a degree even harder to attain," said Hood. "We’re passing this problem onto our already struggling constituents. Budgets are about priorities, and I think we are sending a clear message; the wrong message."

Republican leaders in the Legislature expect to wrap up work on the budget quickly and easily in comparison with recent years.

The budget bills will volley between the Senate and House over the next week as lawmakers try to wrap up work on the budget by next Tuesday.

Republican Senate Majority Leader Randy Richardville says he does not anticipate any big battles between the Republican-controlled chambers. But he says there may be a few hang-ups over schools funding.

"The K-12 budget is one of the more complicated budgets and made some adjustments during targets," said Richardville. "That one being also being one of the biggest budgets has the highest propensity to have some problems with it. But I think those problems will be mostly technical. I don’t anticipate any problems with getting the budgets passed."

Democrats are upset that additional funds for K-through-12 schools will not go directly to reduce cuts to per-pupil funding. Additional projected tax revenue will instead go toward districts that approve cost-saving measures, and make retirement payments.

Politics
5:46 pm
Mon May 23, 2011

Democrats say budget deal kicks off next phase of fight about Michigan's future

The budget should be wrapped up soon. Democrats say the fight will continue.
user aunt owwee Flickr

Governor Rick Snyder and legislative Republicans are expected to wrap up work this week on the budget. If they succeed, they will meet the governor’s target of finishing the budget four months ahead of the constitutional deadline.

Democrats, who are in the minority in the House and the Senate, have some objections, but expect to lose this week’s budget battle.

That won’t stop them from calling for using a revenue windfall to make sure schools don’t lose any money in the new budget.

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