budget

Politics
3:42 pm
Tue April 12, 2011

Govenor Snyder and Republican leadership getting closer on budget deal

Republican leaders in the state legislature are getting closer to a deal on the budget.
Lester Graham Michigan Radio

Governor Rick Snyder and Republican leadership in the State House and Senate appear to be close to a deal on the budget.

From the Associated Press:

Gov. Rick Snyder and Republican state lawmakers are reporting "significant progress" on proposals related to business and pension taxes for the fiscal year starting in October...

Two people with knowledge of the talks tell The Associated Press that the proposals include many elements of Snyder's original business tax plan. They spoke on the condition of anonymity because the deal hasn't been finalized.

The Republican governor wants to replace the state's main business tax with a 6 percent corporate tax applied to corporations with shareholders.

The plan would include taxes on pensions and other retiree income but it would be modified from Snyder's original proposal. The new proposal calls for phasing in or scaling back the tax.

Some lawmakers have been loathe to accept any taxes on pensions, but it appears a plan to phase in a pension tax may be more palatable.

Peter Luke of Booth Newspapers reports on some of the details of the agreement:

Under the phased-in alternative, the status quo would apply to those 67 and up, whose pensions would continue to be tax exempt.

A middle group of retirees 60 to 66 would be subject to a pension tax, but the first $20,000 of pension income for single filers -  $40,000 for joint filers - would be tax exempt.

Those younger than 60 would pay tax on all their pension income.

An AARP spokesman said they remain opposed to a tax on pensions, whether its phased in or not.

A public announcement of the agreement is expected to come this afternoon.

Detroit
2:48 pm
Tue April 12, 2011

Locked out of Mayor Bing's budget presentation

Some people got locked out of today's Detroit City Council meeting, where Detroit Mayor Dave Bing was laying out a 5-year budget plan that called for cutting employee pension and health care costs.

Council security told citizens and several reporters that they couldn't come in because the hearing room was "filled to capacity."

That escalated into a dispute between security guards and the people who demanded their right to enter under the state's Open Meetings Act.

Detroit resident and volunteer organizer Felicia Sanders wanted to hear Bing's presentation.

"If you get up and you're willing to attend a meeting to fight and speak out for your city, you should be allowed to participate in the meeting."

Sanders and others questioned why the City Council didn't hold the hearing in a much larger public auditorium just across the hall.

Detroit
11:12 am
Tue April 12, 2011

Detroit mayor warns a state takeover is "inevitable" without union concessions

Detroit mayor Dave Bing dleivers his budget proposal to the city council
(courtesy City of Detroit)

Detroit’s mayor says the city’s unions will have to give big contract concessions or the city of Detroit may end up in the hands of a state appointed Emergency Financial Manager. Mayor Dave Bing outlined his budget plan to the city council this morning.

Bing says pension and health care costs threaten to force the city into insolvency.  

“If we are unable or unwilling to make these changes, an Emergency Financial Manager will be appointed by the state to make them for us.  It’s that simple.”  

The city is facing a $155 million budget deficit. The mayor says that could grow to over a billion dollars in five years, unless deep cuts are made now. 

Michigan’s new Emergency Financial Manager law gives the state appointed administrator broad powers to throw out union contracts and make budget decisions.

Detroit
10:09 am
Tue April 12, 2011

Watch Mayor Bing's budget address to city council

Detroit Mayor David Bing presenting his budget to city council.
Detroit

Detroit Mayor David Bing is delivering his budget address to city council right now.

Bing says the budget he is presenting is a five year plan to eliminate the city's budget deficit.

He says the most important conversation the city has to have is with union employees about pensions and health care benefits.

By 2020, Bing says fringe benefits and pensions would consume half the city's general fund.

You can watch the speech here.

State Budget
6:49 am
Tue April 12, 2011

State lawmakers return to Lansing

State lawmakeres in both the House and Senate will be back in Lansing today
Matthileo Flickr

Michigan lawmakers will be back at the state Capitol today after a two-week Spring break and it appears that their attention will turn to the state budget.

Budget-related subcommittees in both the House and Senate are scheduled to meet today.

The state faces a projected budget deficit of around $1.5 billion for the fiscal year that begins October 1st. Governor Rick Snyder says he wants lawmakers to finish the budget by May 31st.

Many lawmakers, however, say they don’t think the budget process will be finished before this summer.

Detroit
6:32 am
Tue April 12, 2011

Mayor Bing to present budget to city council

Detroit Mayor Dave Bing at Governor Rick Snyder's January 1st inauguration
Corvair Owner Flickr

Detroit Mayor Dave Bing will present his budget for the city later this morning. The Associated Press reports the budget will propose a five-year plan to wipe out the city's $150 million budget deficit. From the AP:

Tuesday morning's presentation is the first step in the city's budget approval process heading into the new fiscal year that starts July 1.

It follows Gov. Rick Snyder's signature last month on a state law that gives more power to state-appointed financial managers, letting them toss out union contracts to help balance the books of distressed communities and struggling school districts.

Bing has fought often with city unions over concessions designed to cut into the deficit.

A union protest of Bing's proposed 2011-12 budget is planned Tuesday's afternoon outside the Coleman A. Young Municipal Center.

Politics
10:03 am
Mon April 11, 2011

Congress readies for more budget battles

As both sides sort out who won and who lost in the deal to keep the government running, the next phase of budget wrangling ensues.

The current-year budget deal struck Friday night still needs full congressional approval this week.

President Obama will deliver a speech Wednesday on the budget and the long-range deficits.

And sometime during the week, the House is expected to approve a new budget plan for next year that includes big changes in Medicare and Medicaid.

And none of that is to mention the looming battle about raising the federal debt ceiling.

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Politics
2:52 pm
Fri April 8, 2011

Michigan's film industry urges compromise on tax credits

The state's film tax credits are on the chopping block under Governor Snyder's budget proposal
Andrew McFarlane creative commons

Governor Rick Snyder’s proposal to get rid of the current film tax credit and replace it with a more modest grant program has met with a lot of resistance from the film community.

But now some film folks say they’re willing to compromise.

Since 2008, Michigan has offered up to a 42% tax credit for movies made here. That amounted to the state paying out  $60 million last year.

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Government Shutdown
12:06 pm
Fri April 8, 2011

Gov. Snyder says effect of potential federal government shutdown unclear

Governor Rick Snyder, (R) Michigan
(courtesy of the Michigan governor's office)

Governor Rick Snyder says he is not sure how or if state government would be affected by a potential temporary shutdown of the federal government.

Leaders in Congress are still working with President Obama on a budget solution, with a deadline of this evening.  

Governor Snyder says information is still rolling into his office about the potential effects on the state.  

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Government Shutdown
6:47 am
Fri April 8, 2011

Time running out to avert partial government shutdown

Capitol Building, Washington, D.C.

Less than 24 hours remain for President Obama and Congressional leaders to avert a government shutdown. A deal to fund the federal government through September must be reached by midnight tonight to keep the government fully operating. President Obama and legislative leaders met again last night to narrow their differences over how much to cut the federal budget but no agreement was made.

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Government Shutdown
6:41 pm
Thu April 7, 2011

Not all will suffer if the government does shut down

[We asked NPR's Linton Weeks to think about some things that might benefit from a federal government shutdown. Here's what he reported back.]

We have all heard dire predictions surrounding the possible closing down of the federal government.

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Government Shutdown
4:51 pm
Thu April 7, 2011

GOP-controlled House passes stopgap spending bill

President Obama says another round of talks with congressional leaders has helped, but there is no deal yet to avert a government shutdown.

Obama said he hoped to be able to announce a deal on Friday but "there's no certainty yet." He said he told House Speaker John Boehner and Senate Majority Leader Harry Reid that he wants an answer in the morning.

He said there were "a few issues that are outstanding.

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Government Shutdown
9:44 am
Thu April 7, 2011

Essential Vs. Not: Which Jobs Wouldn't Shut Down?

Originally published on Fri April 8, 2011 4:27 pm

In Washington, D.C., and at federal agencies across the country, the big question employees are asking on the eve of a possible government shutdown is: Am I essential or not? Workers and agencies that are deemed essential will be kept on the job if a shutdown occurs.

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Government Shutdown
7:33 am
Thu April 7, 2011

Michigan officials keeping close eye on federal budget negotiations

President Obama met late last night with Congressional leaders to try to avert a partial government shutdown
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.

Education
6:42 am
Tue April 5, 2011

Meetings in Detroit to detail school closings

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.

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Politics
4:15 pm
Mon April 4, 2011

Michigan Radio's Jennifer White talks with Governor Snyder about his first 90 days

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.

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Corrections
4:48 pm
Fri April 1, 2011

Michigan's prisons keep prisoners longer, cost more

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.

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Politics
5:31 pm
Thu March 31, 2011

Snyder and Republican leaders point to progress and sticking points

Republican Governor Rick Snyder and the Republican leadership in the State House and Senate outlined progress and sticking points.
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.

State Legislature
6:35 am
Thu March 31, 2011

The debate over social issues during a budget crunch

Captiol Building, Lansing, Michigan
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."

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Politics
5:34 pm
Wed March 30, 2011

Snyder and Republican leadership to outline progress on budget tomorrow

Governor Rick Snyder outlining his plans in his State of the State address last January.
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.

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