budget

Politics
3:33 pm
Wed February 23, 2011

Governor Snyder talks cuts on public radio call-in program

Then candidate Rick Snyder at the Michigan Republican State Convention in 2010.
Bill Rice Flickr

Governor Rick Snyder was interviewed this afternoon by NPR's Talk of the Nation.

He was asked questions by the hosts and by listeners. You can listen to the entire interview here:

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Commentary
12:30 pm
Wed February 23, 2011

State of Detroit

You may think I am a little crazy, but while I was listening to  Mayor Dave Bing’s State of the City address last night, what kept running through my head was an ancient rock and roll song.

An early hit called Chantilly Lace, by a now half-forgotten artist called the Big Bopper, whose main claim to fame is dying in the same plane crash that killed Buddy Holly more than half a century ago.

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Politics
4:28 pm
Tue February 22, 2011

Protests in Lansing

The Capitol in Lansing
Lester Graham Michigan Radio

Update 4:28 p.m.

Rick Pluta, of the Michigan Public Radio Network, filed a report on the protests in Lansing saying they were organized by "public employee unions, and attracted state and local government workers as well as teachers who had a snow day." From Pluta's report:

They’re fighting against anti-union bills sponsored in the Michigan Legislature, and to show support for union rallies in Madison-Wisconsin and Colombus-Ohio.

Sally McNamara is a teacher in the Adrian Public Schools:

"I’m here supporting the children of our state and our nation. Are we in debt? Are we in trouble? You bet we’re in trouble. Is it really hard-working people who are driving us down in the gutters? No. It’s not."

Pluta says dozens of Tea Party protestors also gathered to rally in favor of the proposed budget cuts.

1:41 p.m.

Protestors came to Lansing today to voice their opinion on the proposed cuts by the Snyder administration and to protest bills in the Michigan legislature they see as anti-union.

The Detroit News reports that "unofficial estimates put attendance at close 1,000" people:

After a brief rally and march to the Capitol, members streamed across to the House office building to call on legislators, and about 200 construction workers poured into a hearing room where testimony was to be taken at noon on a bill to repeal prevailing wage requirements.

Members plan to cram the gallery of the House chambers this afternoon where lawmakers are slated to discuss bills that would grant authority to emergency financial managers to toss out collective bargaining contracts.

The Detroit Free Press says the protestors in Lansing were inspired by the protests taking place in Wisconsin:

Many protesters...said they thought Snyder's proposal was an attack on unions similar to a bill being pushed by Wisconsin's new Republican governor. They said they were inspired to turn out by eight straight days of protests that have drawn tens of thousands of people to the Wisconsin Capitol.

The Detroit News reported on Tea Party protestors who turned out in smaller numbers in Lansing today. They're supporting Governor Snyder's proposed cuts and some hope Snyder will take a similar stand on unions that the legislature is taking. From the Detroit News:

Tea party supporters Annamaria Evans of Clarkston, Pat Miller of South Haven and Jack Stone of Lake Orion said they want Michigan to end collective bargaining rights for public employees, just as Walker has proposed in Wisconsin.

Miller, a member of the Southwest Michigan Tea Party Patriots, said he wants to see Snyder get as tough on unions as the Republican-controlled Michigan Legislature is.

Some of the signs spotted in Lansing:

  • "Recall Snyder"
  • "Don't Tax Grandma"
  • "Get Back to Work"
  • "I'm Not Getting Paid to Be Here"

And some of the chants:

Politics
3:22 pm
Tue February 22, 2011

Union members protest changes to Prevailing Wage law

The Michigan House of Representatives. Union members protested today in a State House committee room.
Lester Graham Michigan Radio

Hundreds of outraged union members filled a State House committee room and the surrounding hallways to protest a proposal to eliminate Michigan’s Prevailing Wage law. Many union members people began chanting and banging on the walls of the committee room.

Unions say the law makes sure workers are paid fairly and that union members get work.

Some Republicans want to get rid of the Prevailing Wage law, saying developers and contractors could save money on construction costs by making wages more competitive.

Jeff Mowry, a member of Plumbers and Pipefitters Local 333, says the proposal to get rid of the wage law is not a direct attack on the collective bargaining rights of unions, but it still tries to hurt unions. 

 "You know, that’s the scary part – everything gets very complicated and very confused but it sure seems like it’s all tied together. And it seems like this is just one piece of a great big puzzle that’s looking to take away our collective bargaining rights, yeah."

Some Republican lawmakers say eliminating the prevailing wage law would save about 10% on construction costs and could create more jobs in the state.

Chris Fischer with the Association of Builders and Contractors gave a presentation to lawmakers on how the state could save money by eliminating the wage law.

Fischer says the chanting was distracting, but he was not deterred.

"It is difficult to make a factual presentation when there’s a lot of white noise in the background. It is disconcerting, but the bottom line is prevailing wage does come at the expense of two things Michigan does not have right now – and that’s jobs and taxpayer dollars."

Union members were told they will be able to testify on the wage law when legislation is before the committee for a vote.

Politics
12:04 pm
Mon February 21, 2011

Unions to fight proposed state laws

As protests in Wisconsin continue, leaders of Michigan labor unions fight proposals in the Michigan Legislature
Mark Danielson Flickr

Leaders of Michigan labor unions are fighting proposals in the Michigan Legislature that they say would hurt collective bargaining rights. The Associated Press reports:

The Michigan AFL-CIO said Monday it opposes more than 30 bills pending in the Legislature including those that would give emergency financial managers of cities and schools the power to terminate labor union contracts. Unions representing public employees also are opposing bills that would change how binding arbitration works for police and fire departments.

Michigan AFL-CIO President Mark Gaffney said some of the measures are an "assault" on the collective bargaining process that calls for unions and employers to negotiate contracts.

Union leaders also said they are concerned about some budget proposals from Republican Gov. Rick Snyder, including measures they say hurt schools, the middle class and low-income residents.

Commentary
10:35 am
Mon February 21, 2011

Budget Alternatives

Well, it’s been four days since Gov. Rick Snyder presented his so-called “atomic bomb” budget, and opposition has started to harden. There are those who are concerned about the poor, largely because of the repeal of the Earned Income Tax Credit.

For example, Detroit Free Press editorial page editor Stephen Henderson said yesterday that this amounts to a “government-sponsored shift of capital away from the most needy citizens to those who are already more comfortable.”

Senior citizens’ groups are upset because the governor wants their constituents to have to begin paying Michigan income tax on their income, just like everybody else does on theirs.

The film industry is screaming about the potential loss of the film credits. The education community isn’t happy with the cuts they’d have to take, though they seem to be bearing them with more grace.

But the interesting thing to me is that none of these groups seems to be offering any kind of alternative plan. They want what they want, but don’t have any kind of broader vision.

Yet something radical does have to be done. The state is running an enormous deficit that has to be gotten rid of, and our old automotive-based economy doesn’t work anymore, not the way it did.

So the question for the critics is, if you don’t like the governor’s plan, what are you going to offer instead?

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Governor Snyder
8:56 am
Mon February 21, 2011

Snyder travels to Kalamazoo today

Governor Rick Snyder travels to Kalamazoo today
Photo courtesy of www.governorelectricksnyder.com

Governor Rick Snyder travels to Kalamazoo today where he will speak to the Kalamazoo Regional Chamber of Commerce and the Rotary Club of Kalamazoo. He's set to speak at 12:30 p.m. and a question-and-answer session is also scheduled. As the Associated Press reports, it's expected the Governor will spend his time defending the budget proposal he released last Thursday:

Last week, Snyder proposed a $45.9 billion budget that includes spending cuts for schools and getting rid of many personal tax breaks. His plan includes a corporate tax change that would save businesses $1.8 billion a year.

Snyder has been working to defend the plan. Critics say it means that the poor and the elderly, public education and local governments would be the ones picking up the tab for businesses.

State Budget
6:39 am
Mon February 21, 2011

Lt. Gov: Sndyer administration does not expect Wisconsin-like budget protests

Lt. Governor Brian Calley
Photo courtesy of www.governorelectricksnyder.com

Senior aides to Governor Rick Snyder say they don’t expect the massive budget protests in Wisconsin will spread to Michigan. Lieutenant Governor Brian Calley says Governor Snyder’s style is less combative than that of Wisconsin Governor Scott Walker. Calley also says he expects most critics of the Snyder budget will be persuaded to change their minds. He says that’s because tough choices this year will avert the need for more cuts in the future.

“Number one, we’re not going to kick the can down the road. Number two, we’re not going to employ one-time gimmicks and quick fixes and those sorts of things. We’re actually going to fix it so that, take a look at Year Two – this actually does solve the problem so going forth, we can actually spend more time on, where do we go from here? How do we work and grow together?"

Nevertheless, some public employee and retiree groups are trying to organize a protest march on Lansing this week. They oppose a demand for public employees to pay more of their health care costs, and a proposed end to the tax exemption on pension income. Governor Snyder presented his budget proposal to state lawmakers last Thursday.

Politics
3:17 pm
Fri February 18, 2011

Funding Our State: A Call-In Show with Jennifer White

Governor Snyder delivered his 2011 budget for the state yesterday
User mtsn Flickr

Governor Rick Snyder (and Budget Director John Nixon) presented the 2011 budget to a joint session of the Michigan legislature yesterday.

Michigan Radio's Jennifer White hosted a call-in show, “Funding Our State,” to take a look at the state of the state’s budget, which is currently facing a 1.8 billion dollar budget deficit for the new fiscal year that begins October 1st.

To find out what this budget means for educators, for finances, for business, and for you, click the link below.

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Politics
11:07 am
Fri February 18, 2011

The Battle of Madison

State workers and their supporters fill the Wisconsin state capitol building in Madison
(pchgorman, Flickr)

Michigan's budget debate is just getting started.    The governor has called for deep cuts and tax increases.   The plan has been criticized. But the situation is no where near as passionate as in Wisconsin. 

The streets of Madison, Wisconsin continue to be a battleground between Republican state lawmakers and their supporters who want to  end collective bargaining for state workers and state workers and their Democratic state lawmaker supporters who oppose it.     For several days, the budget impasse has stalled business at the state capitol.

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Morning News
8:55 am
Fri February 18, 2011

In This Morning's News

Governor's Budget Draws Praise, Criticism

Governor Rick Snyder's budget proposal drew praise and criticism (though slightly more criticism) on Thursday.   The budget calls for deep cuts in spending across the board.  It also calls for taxing private pensions.   The Detroit Free Press described Snyder's budget as 'ambitious, but controversial:

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Commentary
1:16 pm
Thu February 17, 2011

The Budget

Well, the governor’s budget has landed, and people are  shocked. They shouldn’t be. This is what we bargained for. This budget is, in part, a legacy of the last thirty years.

Starting with Ronald Reagan, we’ve been told repeatedly that taxes were bad. Not that they were sometimes too high, but that they were bad, period. So we cut them, and cut them again.

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State Budget
6:53 am
Thu February 17, 2011

Governor Snyder to outline budget proposal today

Governor Rick Snyder will deliver his budget proposal today to the state Legislature
Photo courtesy of www.governorelectricksnyder.com

Update 6:46 a.m.:

Governor Snyder has given a copy of his $45 billion budget plan to the Associated Press. The AP reports:

Rick Snyder is asking for "shared sacrifice" from everyone from senior citizens to state workers, public schools to city halls as he seeks to make up a huge budget gap with a massive budget overhaul.

Even before Snyder presented the plan to lawmakers Thursday, he was defending it. He says it would put the economically troubled state on sound financial footing.

It would cut spending for schools, universities and local governments while ending many personal tax breaks. It would eliminate before- and after-school programs, cut hundreds of state jobs and ask public employees for concessions.

6:30 a.m.:

Governor Rick Snyder will unveil his budget proposal today at 11 a.m. in Lansing. As the Associated Press reports, the proposal is expected to make, "sweeping cuts to spending and gets rid of billions of dollars in special tax exemptions, including those for seniors."

The state faces a projected $1.5 billion dollar budget deficit for the fiscal year that begins October 1st. 

State Legislature
6:38 am
Thu February 17, 2011

GOP leaders won't reject Snyder pension tax plan

State Senate Majority Leader Randy Richardville
Photo courtesy of http://senate.michigan.gov

Republican leaders in the state Legislature say they want to give Governor Rick Snyder time to roll out his entire budget proposal before passing judgment on pieces of it that have become public.

State Senate Majority Leader Randy Richardville says he’s been briefed on the entire budget proposal and is telling people to be patient.

“We’re a little premature making an evaluation of an overall big picture solution. I commend the governor for not being afraid to take on a tough issue and not being afraid to take on a tough issue, not being afraid to roll out a plan. But this is his day, this is his budget. It’s his time to throw out his plan."

The governor is expected to propose lifting the tax exemption on pensions as part of a plan that will also include repealing the Michigan Business Tax, but replacing only part of the revenue.

The governor will make his formal budget proposal to the Legislature this morning at 11 a.m.

Politics
2:00 pm
Wed February 16, 2011

This week in Michigan politics with Jack Lessenberry

The Lansing Capitol
Lester Graham Michigan Radio

Each Wednesday, Morning Edition Host Christina Shockley sits down with Michigan Radio’s Senior Political Analyst Jack Lessenberry to get an update on state politics. This week, the focus is on Governor Snyder’s budget proposal and what cuts he might suggest.  

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News Roundup
7:08 am
Wed February 16, 2011

In this morning's news...

Report: "Fireworks" over part of Snyder's Budget Plan

Chris Christoff, the Lansing Bureau Chief for the Detroit Free Press, says Governor Snyder plans to "eliminate Michigan's generous income tax exemptions for retiree pensions and IRA withdrawals as part of his budget plan" to be released tomorrow. Christoff wrote "a source familiar with the plan" says doing away with the tax exemption could generate more than $1 billion in revenue. From the Free Press:

Many expect Gov. Rick Snyder to set off political fireworks Thursday when he unveils a budget and tax revision plan he says will be simple, fair and efficient...Perhaps nothing will boom louder than a plan to tax pensions and other retirement income the same as all other income -- at 4.35%.

A Snyder spokesperson would not comment on the "speculation." Doug Pratt, a spokesman for the Michigan Education Association, told the Freep that Snyder will "will hear from a lot of retired employees in this state that are not going to be happy with that one." And an aide to republican State Senator Jack Brandenburg said the plan is "a nonstarter."

The Associated Press writes that Michigan's benefits for retirees are one of the most generous in the country:

The Washington-based Center for Budget and Policy Priorities says Michigan's benefits are twice as generous as those of second-place Kentucky. A retired couple in Michigan can have more than $100,000 of income without having to pay any state income tax...

Political pressure in the past has made it hard to reduce senior tax breaks to help the state's bottom line, even as Michigan steadily loses more to the tax breaks as the number of older taxpayers grows.

Governor Snyder will release his budget plan tomorrow.

Prison staff fear privatization is coming

Almost everything in the state is on the chopping block. There has been talk of privatizing parts of the prison system as a way to save money. The Associated Press says the Governor's budget plan will look at cutting around 10 to 20% out of the state's corrections budget.

State workers in prisons fear that will mean privitization. The Associated Press spoke with United Auto Workers Local 6000 spokesman Ray Holman:

The Prison support staff fear the governor may outsource their jobs to private companies to save money.

"If you're cutting $400 million ... you're going to have to go after something," said Holman, whose union represents tens of thousands of state workers, including prison support staff. "We stand to take a substantial hit." 

Former GM exec may return as advisor

The Detroit News says former GM executive Bob Lutz may return to the company as an advisor. From the Detroit News:

General Motors Co. has been in talks with former product chief Robert Lutz about bringing him back as a paid consultant, The Detroit News has learned.

The details were unclear Tuesday, but the 79-year-old Lutz continues to have a close relationship with GM, and the two have been in discussions about formalizing an advisory role, according to sources familiar with the discussions.

Lutz was known as a plain speaking executive at GM who was skeptical of the commercial appeal of electric cars and hybrids. As the Guardian reported when he retired in 2010, Lutz once described global warming "as a total crock of shit."

The Guardian writes that Lutz "predicted the internal combustion engine would reign supreme for at least a further decade, and that it would be "years and years" before alternatives make up even a tenth of the market."

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Politics
4:43 pm
Tue February 15, 2011

Another step toward eliminating the item pricing law

The item pricing law gives retailers indigestion.
Shawn Campbell Flickr

Update 4:23 p.m.:

Rick Pluta, from the Michigan Public Radio Network, says the House will likely vote on a repeal of the Item Pricing Law tomorrow. Pluta spoke with the sponsor of the bill, State Rep. Lisa Lyons. She says individual price tags wouldn't be required, but stores would be required to prominently post prices so consumers know how much things cost:

"It does eliminate the antiquated requirement that every item be priced which has been in effect since before I was born, but it also upholds and provides for consumer protections that Michigan shoppers have come to know, expect and they deserve," said Lyons.

2:06 p.m.

The Michigan legislature is a step closer in repealing the state's Item Pricing Law.

The law requires that most items on store shelves carry an individual price tag.

The Lansing Bureau of the Detroit Free Press reports:

Legislation to rescind the requirement that almost all retail goods sold in Michigan be individually priced cleared its first hurdle in the state House this morning, winning approval in the Commerce Committee on a 16-3 vote. The measure was approved after its sponsors agreed to an amendment that will require retailers to clearly display prices in close proximity to the item for sale.

Governor Syder has said that a repeal of the law will send a signal that Michigan is a business-friendly state. Retailers say the law is antiquated and drives up prices.

Rick Pluta reported for the Michigan Public Radio Network that

The last effort to repeal the law was five years ago, but it failed under the threat of a veto by Governor Jennifer Granholm.

Proponents of the law say the individual price tags protect consumers from being overcharged.

Politics
4:12 pm
Tue February 15, 2011

Michigan AG: Prison releases should not be part of corrections cuts

It costs about $35,000 per year to keep someone in prison in Michigan.
Derek Key Flickr

Michigan Attorney General Bill Schuette says the state should save money in the corrections budget by cutting the costs of incarceration - not by closing more prisons or releasing more inmates.

Schuette says he hopes that's the strategy Governor Rick Snyder will display when he unveils his budget proposal on Thursday.

Schuette says he advised the governor to focus on reducing the cost-per-inmate by bidding out more prison services:

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Politics
2:50 pm
Tue February 15, 2011

Flint's financial plan on hold

The weather ball in Flint can't predict the city's economic future.
Jame Fairbrother Flickr

Update 3:50 p.m.:

The city of Flint did not get approval today from the state for a $20 million bond.   The city needs the money to pay its bills.

The state Treasurer’s office asked the State Administrative Board to table the bond request, which it was expected to approve. The Treasurer’s office is concerned that the city doesn’t have a plan to deal with its long-term debt.   

Flint Mayor Dayne Walling is optimistic the city will get some help from the state. 

“I’m confident the city of Flint and the state Treasurer’s office will work together on a short-term, if not a long-term solution here in the next few weeks.”

Flint faces a multi-million dollar budget deficit.   The city has laid off police officers and dozens of other employees and has reached pay cuts with other city unions. But it still might have trouble making payroll in the coming months. 

Update 2:50 p.m.:

The State Administration Board put off a decision on the city's budget plan this morning. The city wants to borrow money in the form of $20 million in bonds to cover its budget deficit.

The Flint Journal has an update from Flint City Councilman Josua Freeman:

By the end of this month or next month, the city will only have about $500,000 in cash on hand, Freeman said. That's not nearly enough money to meet the payroll expenses of $1.5 million to $2 million every two weeks, he added.

"If nothing changes and we don’t improve our cash flow, we're not going to have enough money to operate," Freeman said.

If the city cannot make payroll, a state takeover or Chapter 9 bankruptcy might be next.

12:42 p.m.

The city of Flint wants to issue bonds to cover it's $17 million budget deficit, but state officials have yet to green light that plan.

The State Administration Board was scheduled to vote on that plan today, but it appears plans have changed.

The Flint Journal is reporting the Board voted to remove the city's request from its agenda today. The Journal reports that led to a cancelation of a Flint City Council meeting scheduled for tomorrow:

Tomorrow's City Council meeting to discuss a $20 million bond request from the state has been canceled.

The meeting, which was scheduled for 5:30 p.m. at City Hall, was canceled after The State Administration Board voted to remove the city's request from its meeting agenda this morning...That move came at the request of the state treasurer's office...City Council President Jackie Poplar said she was made aware of the situation and had no comment until she receives further information.

Commentary
12:49 pm
Tue February 15, 2011

Grappling With The Budget

I was looking at President Obama’s proposed next year’s budget yesterday, trying to get some clues for how all this would affect Michigan. Suddenly, I was hit by a revelation.

Nobody really understands this budget, I thought. Nobody understands this budget because nobody really can understand it. It is too big, too vast, has too many contours and moving parts.

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