budget

Scott_Ableman / Flickr

Governor Snyder’s administration says it expects most state services will continue with little or no disruption if a partial federal government shutdown occurs, the Associated Press reports. The federal government will partially shutdown tomorrow at midnight if there is not a deal to fund the government through September. From the AP:

Snyder spokeswoman Sara Wurfel said Wednesday that the administration is monitoring the situation closely and seeking more information. Key factors influencing the possible effects of a shutdown would be how the federal government defines essential services and how long a shutdown might last.

The federal government faces a partial shutdown Friday at midnight if Congress doesn't take action to avoid one.

Michigan's unemployment insurance agency says it expects benefits would continue to be paid to jobless workers, including the roughly 150,000 who now receive benefits under federal programs.

Michigan has about 52,000 federal government employees, including about 22,000 postal employees.

The first of several workshops to educate Detroit parents on the schools district’s future plans is scheduled for this afternoon, the Associated Press reports. From the AP:

The Detroit Public Schools' Parents Speakers Bureau will hold the meetings starting Tuesday afternoon at Priest Elementary and Central High. Six other meetings are scheduled through April 14.

Thirty schools are slated to be closed this year and two more in 2012 as part of the district's plan to help eliminate a $327 million budget deficit.

District officials say they hope to turn over 18 of the buildings to charter operators as neighborhood schools. Schools not selected as charters will close. An additional 27 schools also have been identified as possible candidates for charters.

Lester Graham / Michigan Radio

It’s been a little over three months since Governor Rick Snyder came into office.

He’s had a few successes, including passing the controversial Emergency Financial Manager Bill. He’s also running into some opposition, even within his own party, especially around issues within his budget proposal.

Jennifer White asked Governor Rick Snyder to talk about the past 90 days and discuss where things go from here.

User bgb / Flickr

While controversy over budget cuts lingers, new statistics show that Michigan's prison system may have some system-wide problems that actually increase cost.The Chicago Tribune/A.P. reports:

Michigan often keeps inmates long after other states would have released them for similar crimes, driving up prison costs by millions of dollars a year and eating up a quarter of the state's general fund.

Both former Democratic Gov. Jennifer Granholm and current Republican Gov. Rick Snyder have encouraged the parole board to be more lenient when it comes to releasing prisoners who have served their minimum sentences. Yet a bill that would require that inmates serve 100 percent of their minimum sentence but no more than 120 percent failed to make it through the Legislature during the last two-year session.

That has left 8,000 inmates still behind bars who have served more than their minimum sentences, a practice that's costing Michigan taxpayers around $280 million annually.

It's likely to take years for the parole board to consider those 8,000 cases, which make up nearly a fifth of the prison population. On April 15, the parole board will shrink from 15 members to 10 under a Snyder executive order estimated to save around $500,000 a year in pay and benefits.

Lester Graham / Michigan Radio

Governor Snyder, House Speaker Jase Bolger and Senate Majority Leader Randy Richardville say they have worked well together to approve many measures so far this year – including the expansion of power for emergency financial managers.

But one area they do not seem to agree on is how and where to reform taxes.

Richardville said "we actually have been disagreeing quite a bit," but he says those disagreements are fine because they are still listening to each other.

"It’s not about disagreement, it’s about passion. Everybody that got elected ran as hard as they could to get here, and is passionate about getting here," said Richardville, "but we have respect for the other passions in the room, so we’re going to get there."

Disagreement over taxing pensions

One area where they disagree is Governor Snyder’s proposal to tax pensions.

Snyder says he stands by his plan, even after receiving a cool reception from many Republican legislators:

"For higher income people, for people who have the wherewithal to say they’re also contributing to our system – I think that’s a fair answer. Because that’s the part of it that is, people shouldn’t just look at what they’re asked to give up, but when you look at where they’re ending up. Are they being treated fairly in respect to the other citizens in our state?”

Governor Snyder often stresses that low-income people on pensions would not be subject to painful tax increases.

Some Republicans state senators say there is no pension tax they would agree to, even one that only focuses on the very wealthy.

Democrats feel left out

Democratic lawmakers say they have been left out of negotiations so far.

Democratic state Senator Bert Johnson says many of the Republican proposals are the reason why thousands of angry people have protested at the Capitol in recent weeks.

"I think we would do well – all of us here in this Legislature – to realize what it being said out on the front steps of the Capitol, what is being said out on the lawns of the Capitol. I think these are not crazy people – these are people who have elected all of us. These are people who go out, and they vote, and they vote in numbers and they’re carrying their concerns to the Capitol."

Johnson says Democratic lawmakers have been ignored in much of the work that has been done so far. He says Snyder will soon find that he needs Democratic votes as he tries to approve parts of his tax plan that are unpopular with Republicans.

Thetoad / Flickr

Governor Rick Snyder says he wants controversial social questions to take a back seat to taxes and job-creation. He says to do otherwise could create intense debates that enflame passions and sideline his efforts to fix Michigan’s economy.

But that has not stopped some of his fellow Republicans in the Legislature. They say GOP control of state government makes this the moment to tackle controversies surrounding abortion, gun control, illegal immigration, and medical marijuana.

Governor Rick Snyder meets up with his inner nerd every morning as he checks an electronic application that reminds him how much time is left before the budget deadline he set for the Legislature—May 31st.:

 “All I have to do is turn on my iPad and it shows me how many days and hours are left, and how many seconds…”

Snyder says he is singularly focused on completing the budget before that time on his iPad runs out. He has proposed massive cuts and tax reforms that would affect the budget. He says right now that should be the focus of everyone’s energy at the state Capitol. He’s finding some people – including Republicans – disagree. State Senator Rick Jones is one of those Republicans:

 “My job is looking at other issues that concern Michiganders."

Jones says the Legislature is working very hard on Snyder’s budget proposals and goals. But he says that does not mean lawmakers cannot and should not also work on social issues. As chairman of the Senate Judiciary Committee he recently took up and voted on a controversial abortion bill that is already covered by federal law. And he sponsored a measure that would add rules to the use of medical marijuana. Jones:

“The issues we take up, are issues where I could walk into any coffee shop in my district and the vast majority agree that it’s something we need to address."

Michigan House Republicans

Governor Rick Snyder will join House Speaker Jase Bolger and Senate Majority Leader Randy Richardville at a press conference tomorrow.

They plan to outline the progress they’ve made closing a $1.5 billion budget shortfall.

But it may be a little awkward, because Snyder still has not reached a deal with House Speaker Jase Bolger and Senate Majority Leader Randy Richardville on his plan for major tax reforms.

Snyder says he hopes the Legislature adopts his plan to tax pensions, and eliminate the business tax in favor of a corporate income tax on profits, but he says he is not pushing his plan too hard just yet.

"Well I’m not leaning on anyone," said Snyder. "I’m having a positive discussion, as I always like to have, about how we can work best together. And I think good partnership opportunities there, and we’re going to continue that dialogue. We’re making positive progress."

A House panel is debating tax plans similar to what Governor Snyder wants.

Leaders in the state Senate are talking about alternatives to Snyder’s plan.

So far, the budget plans include salary restraints on public employees and requiring them to pay more for their benefits.

Some lawmakers say members of the Legislature should take pay cuts and pay more of their benefits too.

But Governor Snyder is staying out of those salary debates.

"Well, we’re three branches of government, and I look at it as they take an opportunity for leadership in an area that affects them. We have more than enough to do in the executive branch."

Snyder has been criticized for paying salaries as large as $250,000 to some of his cabinet members.

Snyder is a self-made millionaire who takes an annual government salary of one dollar.

(photo by Steve Carmody/Michigan Radio)

Flint faces serious budget problems. The city is struggling to absorb a nearly $20 million budget deficit. The state recently approved the city’s plan to sell $8 million in bonds to reduce its debt. The city has also laid off a hundred  workers this fiscal year.  

This evening, the city is expected to take another, though much smaller step to reduce spending.  

Flint’s Local Officers Compensation Committee meets tonight to decide whether to impose a ten percent pay cut for the mayor and city council. The cut would translate into about a ten thousand dollar cut in pay to the mayor and a few thousand dollars each for Flint’s 9 city council members.

(photo by Steve Carmody/Michigan Radio)

Lansing mayor Virg Bernero says he's presenting his 2012 fiscal year budget plan with a heavy heart. The city is facing a $20 million budget gap next year. Bernero says this requires a tough and painful response. 

He's proposing eliminating 200 positions. One hundred and thirty of these jobs are currently filled. Bernero's budget fall particularly hard on the city's public safety department. More than 50 Lansing police officers would be laid off and three fire stations will be closed under Bernero's budget. Bernero says he doesn't relish cuts, but with employee costs being the largest part of the city's budget, he has little choice. 

Bernero says the need for deep spending cuts might be lessened if state revenue sharing is not as deep as proposed by Governor Snyder. He says Lansing voters could help as well if they approve a millage increase on the May 3rd ballot.  

But Bernero says he has to propose a budget now with the "cards" the city's been dealt. Bernero says the city has already made all the easy cuts.    

The changes Governor Rick Snyder wants to make with his proposed budget are hugely controversial. But everyone agrees on this: They are designed to bring new business to Michigan.

The governor believes there is no other way to revitalize our state’s economy. But what does business really think of the governor’s budget? People in business aren’t monolithic. General Motors doesn’t have a lot in common with the mom-and-pop restaurant in my neighborhood with five employees.

So last week, I talked to two business leaders who each represent a broad cross-section of somewhat dissimilar interests. Doug Rothwell is president and CEO of Business Leaders for Michigan, a group of seventy-six of the state’s largest employers.  Rob Fowler has the same title with the Small Business Association of Michigan, sometimes known as SBAM.

SBAM has more than ten thousand members, many of whom have fewer than a hundred employees. Fowler and Rothwell don’t always see eye to eye -- but they do on the governor’s budget.

They support it, right down the line. “I think the governor’s tax plan is the right thing to do, even though some of our members are going to pay more,” said Rothwell, who ran Detroit Renaissance before it evolved into Business Leaders two years ago.

Rob Fowler, who has also had small business leadership positions in Indiana and Ohio, put it this way: “You have to understand the moment in time we are in.”

“Sure, there are things in the governor’s plan I am sure, standing by themselves, our members would not support.”

But both men said it was vitally important to pass the plan as a whole, that if lawmakers started picking off pieces, it would fall apart.

I talked to each man separately, and discovered that what both liked most about the plan was that it offers a coherent, comprehensive strategy for Michigan’s long-term economic recovery. Rothwell noted that this was not a budget of quick fixes and one-time solutions, but one with vision.

Critics have said that the governor is just betting an hunch, gambling that slashing taxes will bring new business into the state.

Photo courtesy of VoteVirg.com

Lansing Mayor, and former Michigan gubernatorial candidate, Virg Bernero delivers his city's 2012 budget to the Lansing City Council tonight. It's being reported this morning that Bernero will propose a budget that contains $20 million in cuts.

The Lansing State Journal reports:

In the run-up to Monday's formal budget presentation, Bernero's staffers have sent signals about the magnitude of possible cuts. Among the most notable: the potential closure of three fire stations and elimination of 60 positions in the Fire Department.

As the Lansing State Journal explains, Lansing, like many other cities and townships across the state, is, "caught between competing budget pressures. First is the drop off in revenue from local property taxes and from promised aid from the state government. City budgeters also have to cope with rising costs, particularly on pensions and on health care for workers and retirees alike."

Michigan Municipal League / Flickr

Mitch Bean, the Director of the state’s nonpartisan House Fiscal Agency will outline parts of Governor Rick Snyder’s budget proposal later today.

Bean will talk about the Governor’s budget proposal and answer questions this evening at Muskegon Community College.

The state faces an estimated $1.4 billion budget deficit for the fiscal year that begins October 1st.

Ifmuth / Flickr

State lawmakers have begun their two-week spring break, but many of them say they will still be in Lansing working on budget issues. That includes negotiating with Governor Rick Snyder on tax reforms.

Lieutenant Governor Brian Calley says he expects lawmakers to meet Governor Snyder’s May 31st deadline to complete work on the budget.

“Any time that we waste right now adds time on the back end, and we really owe all the constituencies who depend on state an answer before we get to the same type of timeframe that we’ve dealt with in the past. So, it’s not really fair to put these things off until fall or even late summer.”

Snyder has proposed a tax on pensions, a new corporate income tax to replace the Michigan Business Tax, and scaling back tax credits.

Calley told lawmakers that if they don’t like Snyder’s plan, they need to put something else on the table that will help end the budget deficit.

Republicans in the Senate are expected to unveil a plan that includes an expanded corporate income tax, and to hold off on taxing pensions.

State to close prison

Mar 25, 2011
(courtesy http://www.mco-seiu.org/)

The state Department of Corrections is closing a state prison in southern Michigan. The move will save the state millions of dollars. The Florence Crane correctional facility in Coldwater costs about $27 million a year to operate.

The facility houses about a thousand mainly older inmates, many with serious health problems. Those inmates will be sent to other prisons around the state. 

John Cordell is the state Corrections Department spokesman. He says the state will be careful when placing these inmates in other facilities. 

“We don’t want to place prisoners in a situation where…they have a pressing health care need, but the health care provider is a hundred miles away, every time  we have to take them back and forth.  It doesn’t make any sense.”  

The Coldwater prison will not be the only state prison closing this summer. The Muskegon Correctional facility is also scheduled to close in June. Cordell says the state doesn’t need the two prisons anymore. 

“We expect that by June first we’ll have well over a thousand beds that are empty within the system. So we can identify this prison.  Close it.  Place those prisoners within the beds in the system and we’ll still have some cushion.”

Michigan’s prison inmate population has declined from a high of 51,000 in 2007  to just under 44,000 today.  

The Daily Reporter in Coldwater notes that Michigan's Corrections Department has been cutting back for some time:

In 2009, to save more than $118 million, Gov. Jennifer Granholm closed three prisons and five camps. They were the Standish Maximum Correctional Facility, along with prisons in Muskegon and Kincheloe. In addition, the state closed camps in Shingleton, Painesdale, Iron River, Grayling and White Lake. The cuts impacted more than 1,000 state employees. Although there was much talk, there were no closures last year.

Nikonmania / Flickr

As part of a plan to save nearly $21 million, the Michigan State Police announced yesterday that it plans to close 21 posts across the state. Closings include posts in Adrian, Bad Axe, Battle Creek, Bridgeport, Bridgman, Cheboygan, Corunna, Detroit, Gladwin, Groveland, Hastings, Iron River, Ithaca, L'Anse, Manistee, Munising, Newaygo, Richmond, Stephenson, Traverse City and Ypsilanti. The Associated Press reports:

The changes would take effect with the start of Michigan's next budget year in October. Troopers would be deployed throughout the state mostly from remaining posts and other buildings the state police would call detachments. Some troopers assigned to rural areas would be based from their homes. The state police say it's part of a regional policing plan.

From the Detroit News:

Gov. Rick Snyder announced his intention to close posts last month but gave few details. The severity of the plan shocked some: No troopers will be laid off, but come October, the number of posts will fall from 62 to 29, as 12 posts will be downgraded to detachments that are closed to the public but open to troopers for administrative work.

The move is one of the biggest changes in years to a system of policing that has remained virtually unchanged for seven decades. And it's got some worried if troopers can adequately cover larger areas...The plan is designed to save about $3.2 million to help the department offset a $20.7 million shortfall to its $521.5 million budget. Michigan State Police Director Kriste Kibbey Etue said in a statement that troopers will continue to patrol roads and assist communities at the same level they have in the past.

Steve Carmody / Michigan Radio

Many college students are expected to gather at the state Capitol tomorrow to protest Governor Rick Snyder’s proposal for deep budget cuts to public universities and colleges. The protesting students may have the support of their university presidents.  

Michigan State University President Lou Anna Simon says she hopes lawmakers listen to the concerns of students who show up to protest at the Capitol. She says student voices still matter, even if the movement does not sway lawmakers in the Republican-led Legislature.  

“What happens today, what happens in whether or not all these changes actually balance a budget and move to prosperity will affect their lives forever."

Simon says this is a great time for students to be a part of the democratic process, and learn as much from real life experience as they could in the classroom. She told lawmakers that most students surveyed at MSU say they want to live in Michigan after they graduate. But, she says, fewer than half think they will be able to stay and find jobs in the state.

The State Senate Reforms, Restructuring and Reinventing committee tomorrow will discuss a bill forcing government workers to pay between 20% to 25% of their health care costs.

Allan Cleaver / Flickr

Ever since Governor Rick Snyder released his budget plan last month, people have been looking at the details and wondering how they might be affected by the plans.

For people with pensions and the working poor, it's been clear, you would pay more if Snyder's plan is approved. But how much more?

The Detroit Free Press, in a series of reports, is seeking to break down the numbers. In their first report What Snyder's income tax plan means for you they summarize their findings this way:

Parents with low-paying jobs would stop getting state income supplements worth as much as $1,000.

High-income retirees with generous pensions would pay thousands of dollars more.

But taxpayers in brackets that cover most Michiganders would see little change in their state income tax bill under Gov. Rick Snyder's sweeping proposals.

The Freep provides some detailed examples of how the tax proposals might affect certain people.

Dani Davis

Arts advocates were in Lansing this week, but not to protest Governor Rick Snyder’s budget proposal. They were there to talk about how the arts can help re-invent Michigan.

Ken Fisher is president of the University Musical Society. He says he has faith in Governor Snyder's commitment to the arts:

"He supported music and culture in Ann Arbor, he’s got kids that play the trumpet, and I just hope he’ll see the opportunity that the arts have to really be a partner to his plan."

Snyder’s budget proposal calls for no cuts to current state arts funding.

Sarah Razak / Flickr

The Flint school board sent lay-off notices to almost all of their superintendents, principals, and other administrators, according to the Flint Journal. Linda Thompson, the paper said, was the only administrator who did not receive a notice.

From the Flint Journal:

The move comes as the district wrestles with projected revenues of $20 million to $25 million less than projected expenditures for the 2011-12 school year.

The measure is something of a technicality, a precaution that allows the district flexibility when the time comes to decide how many administrators will stay on board, said Thompson.

Thompson said its hard to predict when the district will know precisely what it's revenues for next year will be and how many  administrators will be called back.

"When are they going to settle what's happening at the state level?" she asked.

School districts across the state are anxiously awaiting state budget decisions in Lansing.

In the past few years, the districts have had to make fiscal decisions with no firm guidance from legislators in Lansing while they haggled over the state's budget well past fiscal planning deadlines.

Governor Rick Snyder hopes to change that. He's set a deadline of May 31st for legislators to settle on the budget.

The Flint Journal reports on cuts expected, "Gov. Rick Snyder's proposed budget includes a $300 per-pupil cut to school aid that comes on top of an already-planned $170 cut. Factoring in an expected rise in rates schools pay to a state retirement pool and districts across Michigan are expecting $700 less per student next year."

You Never Can Tell

Mar 16, 2011

The governor’s made some decisions that are wildly unpopular. Unions are upset. Taxpayers are upset. His own party isn’t too sure he is right.

Behind closed doors, leaders of the opposition party are rubbing their hands in glee. They think they know a one-term governor when they see one.

That’s what’s going on right now in Wisconsin, to be sure, and also, to a lesser extent, in Lansing. Democrats are convinced that if Governor Snyder indeed manages to tax pensions, cut education, and end the Earned Income Tax Credit, he’ll be toast.

Bill Rice / Flickr

It was only a few months ago that Republican Rick Snyder and the majority Republican legislature were voted into office. Snyder said on the campaign trail that he wanted to change the way state government works.

He promised to “re-invent” Michigan.  People liked the sound of that.

As he’s revealed the path to his vision of Michigan, not everyone is pleased. 

(sound of protestors in capitol)

Union members, Democrats, public employees, retirees and the poor have been holding rallies at the capitol about as often as the legislature meets in Lansing.

Steve Carmody / Michigan Radio

Update 2:31 p.m.:

A spokesperson from the Governor’s office responded via email with the following:

"The proposed budget and tax plan is based on fairness and preserving core safety net services – while improving and strengthening our economy so ALL can prosper and benefit."

2:06 p.m.:

A handful of people gathered in Ann Arbor on Monday to speak against Governor Snyder’s proposed budget for an event organized by Progress Michigan, a progressive organization. The speakers included union representatives, city officials, and individuals.

Lois Richardson is Mayor Pro-Tem of Ypsilanti and voiced criticism of the budget. She says cuts to revenue sharing and historic tax credits will devastate Ypsilanti and other cities. Richardson says the changes will affect everyone in the state of Michigan, not just those who relied directly on the funding.

Brit Satchwell is the President of the Ann Arbor teacher’s union. He says students will feel the cuts the most:

“I’m a sixth grade math teacher and I’m here to tell you, the kids don’t get a makeover year. You don’t get to do sixth grade again because the adults messed it up.”

Satchwell also said school districts like Ann Arbor have already been cutting their budgets for the past few years.

This was one of several events held across the state in preparation for a protest scheduled for Wednesday at the Capitol.

-Bridget Bodnar, Michigan Radio News

Simon Brass / Flickr

The state's prison system is in line for some budget cuts like a lot of other parts of the state government.

Now, a recent audit says the prison system could save more in prescription costs.

From the Associated Press:

DETROIT (AP) - State auditors say Michigan could have saved millions of dollars by choosing lower-cost alternatives to a mental-health drug that is widely prescribed in prisons.

The audit released Friday says psychotropic drugs are dominating the cost of prescriptions in the prison system. They added up to more than $8 million from January through July last year - 41 percent of all pharmaceuticals.

Seroquel is the most prescribed antipsychotic drug. Auditors say the Corrections Department could have saved $350,000 a month by switching just half of those prescriptions to a drug called Risperdal.

The Corrections Department says it's taking steps to control costs. The audit also found that prisoners are not being charged for over-the-counter medicine even if they can afford it.

Kevin Wong / Flickr

The recent debates about school funding and public employee benefits have teachers in Michigan feeling defensive.  South Lyon East High School Social Studies teacher Keith Kindred has these thoughts:

Last year about this time, I did a commentary for Michigan Radio describing the copious amount of time I had to think while I proctored state proficiency exams given to high school juniors. You may remember I used much of that time to reflect on all the wrath being directed at teachers.

Recent events in Wisconsin, Ohio, and even here in Michigan suggest I may have been prescient in recognizing how severe the disconnect between teachers and the public had become, but they also prove that my plea fell on deaf ears. Clearly, the anger I observed a year ago was but a preview and, moreover, my attempt to plead for both common sense and common ground was a failure.

So in the spirit of perseverance that all good teachers instill in their students, I want to try again.

Ready? Okay, here goes: Are people insane?

Michigan Municipal League / Flickr

Governor Rick Snyder spoke to the Michigan Association of Broadcasters' Great Lakes Broadcasting Conference and Expo in Lansing this morning. As the Associated Press reports, the Governor continued to defend his idea for reinvesting the state:

...Snyder says Michigan citizens need to think about what's best for everyone rather than just themselves if the state is to reinvent itself.

...the Republican governor defended his nearly $2 billion in business tax cuts and the income tax changes he wants to make to offset that, including a tax on pensions.

He says people naturally object to changes that will affect their bottom line. But he believes "we are at a 'we' moment, and we can do this."

Snyder has been criticized for proposing deep cuts to public education, universities and local governments at the same time he's slashing business taxes and asking for people to pay more in income taxes.

He says a new approach is needed.

cmu.edu

Some officials from universities around the state are saying the Governor's proposed cuts are deeper than the 15% they expected.

The Detroit News had a piece on the reaction over the weekend by reporter Karen Bouffard.

Bouffard wrote "university officials said they discovered the cuts after pouring through the details of Snyder's proposed budget."

Mike Boulus, the executive director of the Presidents Council, State Universities of Michigan, said the Governor didn't portray the proposed cuts openly:

"I find it less than honest that you would portray the cut as 15 percent, and call additional money an 'incentive' if you keep tuition less than 7.1 percent. It's clearly less than transparent in the way it's been presented."

Governor Snyder's spokesperson said the proposed cuts were portrayed clearly.

To keep their cuts at 15%, universities have to agree to keep their annual tuition hikes under 7.1%.

If they don't, cuts in state aid could be greater than 15%.

The cuts proposed for the 15 public universities in the state average 21%, according to the article.

Some of the specific proposed cuts mentioned in the piece (cuts if universities don't hold tuition increases under 7.1%):

  • 23.3% for Central Michigan University
  • 19% for Eastern Michigan University
  • 21.9% for Grand Valley State University

Some university officials said "they will try to hold tuition increases under the 7.1 percent cap, although they can't be sure until their boards begin approving next year's budgets in June or July."

According to the article, the largest cut universities have seen in the last 32 years was 8.5%.

Two plus two equals four. Simple, right? That’s math even a journalist can understand. Unfortunately, the legislature and a large section of the general public doesn’t quite seem to get it.

State government is currently on course to run a huge deficit for the next fiscal year. State budget deficits are illegal, under Michigan’s Constitution. That budget has to be balanced by September 30.

Four months ago, we elected a ton of Republicans to the legislature who pledged they wouldn’t vote for any new taxes, no matter what. We elected a Republican governor who said he was going to deeply cut taxes on business, because he believed that was the only way to attract new jobs and industry to this state.

So we voted for no new taxes of any kind, less taxes on business, and we‘ve got a big budget deficit to start. And now we are shocked, shocked, that the governor is insisting on making huge cuts in state spending.

Well, we shouldn‘t be.

We voted for this. And, we tolerated the last governor, and several different past legislatures, refusing to deal with our problems. We put things off till we couldn‘t do it any more.

And now, we have to fix it. What‘s worse, we have to do this when we are still mired in the effects of the worst recession since World War II. Yes, I know the recession is officially over.

The economists say so, anyway. But hard times are not even close to over in Michigan. The auto industry is never coming back the way it was, and we need a new economy.

nasaimages

Organizers for AARP Michigan say their rally will be held on the east steps of the State Capitol Building on March 15th from 11 a.m. to 1p.m..

From the AARP Michigan blog:

The rally was the brainchild of AARP member and retiree Mary Lee Woodward of Oxford, who launched the effort on Facebook with the help of her daughter.  Woodward says she's heard from thousands of seniors who say new taxes on their pensions and other income will make it difficult to pay their bills. Many also object to elimination of a tax credit for low-income working families, and proposed cuts to schools, universities and local police and fire protection and road maintenance.

user lincolnblues / Flickr

Michigan legislators are planning to discuss alternatives to Governor Rick Snyder's budget proposals this week.

One hot button issue is Snyder's plan to place a tax on pensions. That tax is estimated to raise $900 million.

It would go a long way in eliminating the state's budget deficit which is estimated around $1.5 billion.

It's angered a lot of seniors, and lobbying groups, like the AARP, are putting pressure on legislators in Lansing to keep the tax exemption on pensions in place (the AARP plans to hold a rally in Lansing on March 15th).

Laura Weber, with the Michigan Public Radio Network reported that Michigan Senate Republicans are meeting early this week to try to come up with alternatives to the pension tax plan.

Weber spoke with Republican State Senator Tory Rocca who said his opposition to taxing pensions is simple:

"It’s a tax increase, and on top of that it’s a tax increase on senior citizens, and if you look at what their cost of living is and what their cost of living increases are, they tend to have a higher cost-of-living increase than other people because a lot of their cost-of-living is weighted toward health care, which does increase at a rate greater than the rate of inflation every year."

The Associated Press reports that State Senate Majority Leader Randy Richardville didn't say whether Snyder's pension tax plan had enough support to win approval.

But he did say that if legislators want to scrap the tax plan, they'll have to find money elsewhere. From the AP:

Richardville said that if the Senate opposes pieces of Snyder's proposal they will have to balance it out by cutting programs or finding revenues somewhere else within the budget.

That's $900 million more, which could mean more proposals out of Lansing for bigger cuts.

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