budget

flint
12:35 pm
Tue March 29, 2011

Flint's mayor, city council may soon take a pay cut

Flint, Michigan
(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.

Politics
7:13 pm
Mon March 28, 2011

Lansing mayor proposes eliminating 200 city jobs

Lansing mayor Virg Bernero delivers his budget address during a meeting of the city council
(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.    

Commentary
11:01 am
Mon March 28, 2011

Why Business Leaders Support the Budget

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.

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City Budgets
8:41 am
Mon March 28, 2011

Bernero to deliver Lansing budget plan today

Lansing Mayor Virg Benero will deliver his 2012 budget today
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."

State Budget
7:10 am
Mon March 28, 2011

State official to discuss Snyder budget, answer questions

Mitch Bean, Director of the state's House Fiscal Agency, will outline parts of Governor Snyder's budget this evening
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.

State Legislature
6:38 am
Mon March 28, 2011

Lt. Gov says tax plan debate will continue through break

Lt. Gov. Brian Calley says negotations over the state budget will continue in Lansing even though lawmakers are on a two-week break
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 Budget
12:29 pm
Fri March 25, 2011

State to close prison

Florence Crane Correctional Facility in Coldwater, Michigan
(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.

Budget Cuts
6:54 am
Fri March 25, 2011

Michigan State Police plan to close 21 posts

The Michigan State Police announced yesterday that it would be closing 21 state posts
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.

Education
4:34 pm
Wed March 23, 2011

College students to protest higher ed cuts at state capitol

The bell tower on the Michigan State University campus in East Lansing
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.

Politics
1:03 pm
Tue March 22, 2011

Forcing government workers to pay more for health care

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.

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Politics
9:17 am
Fri March 18, 2011

Report: How Snyder's tax plan would affect you

Your state taxes are likely to change.
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.

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Arts/Culture
3:28 pm
Thu March 17, 2011

Arts leaders have 'faith' in Gov Snyder's commitment to the arts

Current state funding for the arts is $2.5 million. In 2001 it was $26 million.
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.

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Education
9:08 am
Thu March 17, 2011

Layoff notices go out in the Flint School District

Flint schools are gearing up for cuts. (The International Academy in Flint)
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."

Commentary
2:45 pm
Wed March 16, 2011

You Never Can Tell

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.

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Investigative
8:43 am
Tue March 15, 2011

What will the 'Michigan reinvention' look like?

Rick Snyder campaigned on "reinventing" Michigan.
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.

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Budget Protests
2:31 pm
Mon March 14, 2011

Ann Arbor rally one of many against state budget

Brit Satchwell says proposed budget cuts will hurt students
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

Politics
1:44 pm
Fri March 11, 2011

Report: Psychotropic drugs "dominating" cost of prescriptions in prisons

Prison fence. State auditors say Michigan prisons could have saved millions in prescription costs.
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.

Education
11:05 am
Thu March 10, 2011

Commentary: In defense of teachers

Classrooms could get crowded if cuts go through.
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?

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Governor Snyder
12:58 pm
Wed March 9, 2011

Snyder defends his budget proposal in Lansing

Governor Rick Snyder continues to defend his budget proposal
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.

Education
10:48 am
Tue March 8, 2011

Report: Cuts to universities deeper than first expected

Central Michigan University could see the state's largest cut if they don't keep tuition increases under a 7.1% cap.
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%.

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