Rick Snyder

Politics
4:23 pm
Fri February 18, 2011

Snyder administration wants legislature to undo 'live-in partner' benefits

Governor Rick Snyder has asked the Legislature to reverse an employment panel’s decision to allow un-married state workers to claim their live-in partners on their benefits.  

The governor’s letter gives the Legislature 60 days to overturn the state Civil Service Commission’s decision. Reversing the independent Civil Service Commission will require two-thirds majorities in the House and the Senate. Both are controlled by Republicans, but getting to the necessary super-majorities is not guaranteed.  

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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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Developing
3:45 pm
Thu February 17, 2011

See who shares the sacrifice in Governor Snyder's proposed budget

A look at the projected budget deficits states across the country are facing.
Michigan Radio

Update 3:45pm

Governor Rick Snyder’s budget proposal calls for eliminating millions of dollars in business and personal tax breaks; big cuts to schools, universities, and local governments.  The governor says it is bitter medicine necessary to cure the state’s budget troubles, and set the foundation for an economic recovery. 

Governor Snyder says everyone will have to sacrifice to fix massive fiscal problems that have built up over decades under Republican and Democratic administrations. That includes growing pension and healthcare liabilities that the state will start to pay down.

 “We are going to take responsibility for a legacy of debt that has built up over decades.”  

 To pay for that, balance the budget, and cut taxes for businesses, Snyder wants to shut down state police posts and at least one prison; start taxing pensions; cut money for schools, universities, and local governments; and ask public employees to pay more for their benefits. 

Critics already say the budget will force more school districts and local governments into insolvency and families into poverty. The governor, who is a millionaire, says he will share in the sacrifice by working for a dollar a year.    

Budget Director John Nixon says the administration’s proposal will end the state’s string of budget crises and will send a message that Michigan is managing its finances.

“A lot of people are going to be upset with this budget. We understand that. But it’s the right budget. It’s a responsible budget that takes into account the needs of our citizens and taxpayers’ ability to pay.”

About two dozen state employees protested in Lansing today as Governor Rick Snyder presented his budget plan to state lawmakers. They complained about plans to roll back public employee benefits and tax pensions.         Tammy Warner works in the state Department of Human Services.

“The state is cutting all kinds of services not just to the poor – they’re actually decimating the middle class. They’re also decimating the state workers and they are making it impossible for us to live in this state.”

Public employees say they’ve already made concessions and accepted unpaid furlough days to help the state through earlier budget crises.   Advocates for low-income families say ending state the earned income tax credit for the working poor will result in more children living in poverty. School and city officials say cuts will force more local governments into insolvency.

Update 1:22

Democratic leaders in the Michigan legislature are reacting to Governor Snyder's budget proposal.

Senate Democratic Leader Gretchen Whitmer called the Governor's budget "the same old politics of putting corporate tax breaks ahead of the people. From Whitmer's statement:

"Governor Snyder's idea of shared sacrifice seems to mean that working families will do most of the sacrificing while companies continue to reap the rewards," said Whitmer. "He is balancing this budget on the backs of our kids, working families, and our seniors. Contrary to his rhetoric about 'moving all of Michigan forward,' this budget picks out who he's willing to leave behind."

Update 12:43 p.m.

Governor Snyder has placed his budget recommendations to the Michigan legislature online.

Update 12:11 p.m.

"The day of kicking the can down the road is ending," declared Governor Snyder in calling for tax and budget changes that he says should have happened twenty or thirty years ago.   

Snyder says he used the principle of fairness in arriving at some changes, for example, an end to the Michigan Business Tax, the tax on unincorporated companies in the state.   Snyder says the tax is unfair because it's a form of double taxation, since the business owner already pays personal income tax. 

And he says individual pension income should be taxed.  Snyder says it's not fair to tax the income of senior citizens who are still working, and not tax retired senior citizens living on pension income.

Snyder wants to eliminate many individual tax credits, such as the deduction for donations to public universities.  But he would keep the deduction for personal property tax, although he says the property tax system will need to be overhauled at a later time.

Snyder says his budget keep the safety net for Michigan's poorest citizens intact.

Update 11:23 a.m.

Governor Snyder says he will share in the sacrifices he's calling for in the state budget by working for one dollar a year. The governor is presenting a budget that includes big cuts to schools, local governments, and public universities -- as well as eliminating many personal and business tax breaks. The governor's budget proposal also calls for an overall one-point-eight (b) billion dollar cut on businesses. - Rick Pluta

Update 10:48 a.m.

Michigan Government Television will carry Governor Snyder's presentation of his budget proposal live at 11 a.m.

The Michigan Senate will also live stream the presentation from their website.

7:11 a.m.

These details of Michigan Gov. Rick Snyder's $45 billion budget proposal were outlined to The Associated Press on Wednesday.

- Drops the individual income tax rate from 4.35 percent to 4.25 percent on Oct. 1; the tax will then remain at 4.25 percent rather than being decreased to 3.9 percent in future years as scheduled.

- Eliminates the state income tax exemption for pensions, but Social Security benefits will continue to be exempt.

- Eliminates the Michigan Business Tax and replaces it with a flat 6 percent corporate income tax on major corporations.

- Eliminates business credits awarded for films, brownfield redevelopment, the Michigan Economic Growth Authority, etc., although current commitments will be honored. Sets aside $25 million for film credits from the 21st Century Jobs Fund.

- Rolls funding for universities and community colleges from the general fund to the school aid fund, the main funding source for K-12 schools.

- Cuts per pupil funds $300, in addition to the currently budged $170 per pupil reduction.

- Eliminates statutory revenue sharing payments for cities, villages and townships in FY 2012, leading to a net savings of $92.1 million. The change impacts 509 local units of government. Increases constitutional revenue sharing by 4 percent, to $659 million.

- Includes $200 million for a new incentive-based revenue sharing program for cities, villages and townships that meet specific standards to be detailed in March.

- Sets a lifetime limit of 48 months for residents to receive welfare payments, with exemptions for incapacity and hardship.

- Closes the Shawono Center in Grayling, and cuts 20 beds in capacity at the Maxey Training School in Whitmore Lake, resulting in $787,000 general fund savings.

- Eliminates 300 field worker positions in the Department of Human Services.

- Closes one prison to be named later this year.

- Reduces the number of Michigan State Police posts, saving $3.2 million.

- Reduces state aid to libraries in the Department of Education budget by $2.3 million in the general fund, with $950,000 directed to the Michigan eLibrary, resulting in net savings of $1.4 million.

- Suggests privatizing food service and prison stores operations in Michigan prisons, and suggests that resident care aide services at the Grand Rapids Veterans' Home be competitively bid.

-Turns the dairy farm inspection program over to industry field representatives certified by the Department of Agriculture.

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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.

Commentary
3:32 pm
Wed February 16, 2011

Two Plus Two

 Tomorrow, Governor Rick Snyder will present to the legislature his proposed budget for the next fiscal year. The state is currently running a deficit of close to two billion dollars.

The governor also wants to make changes to the business tax system that would further add to that deficit. Keep in mind that by law, a balanced budget has to be enacted by September 30th.

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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
4:12 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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News Roundup
7:19 am
Mon February 14, 2011

In this morning's news...

Lt. Governor talks more about the coming budget

He didn't liken the proposed state budget to an atomic bomb this time around, but Lt. Governor Brian Calley continues to talk about the big changes Governor Snyder is seeking with his budget proposal.

The Snyder Administration will unveil the budget proposal to the State Legislature this Thursday. The Muskegon Chronicle wrote about Calley's remarks made on Saturday:

Michigan Lt. Gov. Brian Calley told the Muskegon County Republican Party that Gov. Rick Snyder's first proposed budget to be unveiled Thursday to state legislators will make good on the promise of “shared sacrifice” and a taxing system that is “simple, fair and efficient.”

He said the first weeks of the Snyder administration has laid the groundwork for the most extensive change in public policies this state has seen in generations.

Detroit Symphony Orchestra talks continue

The DSO is trying to avoid a cancelation of its entire season with stepped up talks between management and the striking musicians. Both sides were negotiating over the weekend, the Detroit News reports:

While both sides were tight-lipped Sunday, musicians spokesman Haden McKay did confirm late this afternoon that talks that began Friday to end the work stoppage and avert cancellation of the rest of the 2010-11 season were still ongoing.

Friday and Saturday's talks were indirect, with each side making its case to an unnamed intermediary, who then communicated it to the other party in a form of shuttle diplomacy. McKay did not specify whether today's talks were face-to-face or indirect.

Aretha Franklin Honored

Aretha Franklin was honored last evening at the 53rd Grammy Awards. The Detroit News writes:

A noticeably slimmer Aretha Franklin appeared in a videotaped message at the 53rd Grammy Awards, following a tribute to the singer that kicked off today's awards show. She thanked fans for their support since her "hospitalization" but didn't get into any specifics of her illness, and she apologized for not being at the ceremony in person. "Next year, OK?" she said.

A video of what some of the artists think of Aretha:

State Budget
11:16 am
Fri February 11, 2011

Budget countdown: Corrections

under the state capitol dome
(photo by Steve Carmody/Michigan Radio)

Next week, Governor Rick Snyder will deliver a budget plan that his own Lt. Governor has described as an ‘atomic bomb’ of spending cuts. Michigan’s Corrections Department is expected to be a prime target. 

Michigan is facing a state budget deficit next year estimated at $1.8 billion. 

Michigan spends nearly $2 billion a year housing more than 44,000  inmates. The number of inmates has declined by more than 7,000 during the past five years.  And the number of prison employees has shrunk by nearly 4 thousand in the past decade.  

Still, conservative groups say more savings can be wrung out of the Corrections Department with privatization.

Mel Greishaber is with the prison guards union.  He warns privatizing some prison jobs might save money, but it will increase security problems.  

“Often...civilians who come in and work are not as sensitive to the safety issues and security issues that they need to be.”  

Greishaber is also worried about the level of experience state lawmakers have with Michigan's prison system.  A large percentage of state lawmakers are new to the job.   Greishaber notes that few members of the largely first term legislature have ever even visited a state prison.

 “Everyone comes in with preconceived notions.  They’ve watched movies which almost always are not the real life situation."

Governor Snyder
8:34 am
Fri February 11, 2011

Snyder makes bold prediction

Governor Rick Snyder
Photo courtesy of www.governorelectricksnyder.com

The crowd at a fundraising dinner for the Michigan Political Leadership program was maybe hoping Governor Rick Snyder would drop some clues on what’s going to be in his budget proposal next week.

The governor revealed almost nothing about his spending plan. But he did make a bold sports prediction. Governor Snyder said:

"Before I finish office, the Lions will be in the Super Bowl – how’s that?"

The governor did not say if that would be in the next four years – or if a championship season for the Lions would require a second term. The Lions record last season was six victories to 10 losses, following a winless season in 2009.

State Budget
7:05 am
Thu February 10, 2011

Governor Snyder will release budget proposal next week

Governor Rick Snyder will outline his administration's budget Thursdsay, February 17th
Photo courtesy of www.governorelectricksnyder.com

Governor Rick Snyder's budget proposal for the fiscal year that begins October 1st will be released next Thursday, February 17th. The state currently faces a projected $1.8 billion budget deficit for the new fiscal year. Snyder says he plans to ask lawmakers to do away with billions in business tax exemptions, according to the Associated Press. The AP reports:

Snyder has said he plans to review tax credits to see which are worth keeping, but hadn't said how many would be eliminated.

Lt. Gov. Brian Calley told the Holland Chamber of Commerce on Tuesday that the administration is counting on $2 billion from such cuts.

Calley also says the budget proposal will be like an "atomic bomb" going off in Lansing, a comment that drew criticism from Snyder spokeswoman Sara Wurfel.

Wurfel said Wednesday that Calley's comments were an "extremely unfortunate choice of words."

She also denied Calley's claim that Snyder plans to present an all-cuts budget.

Governor Snyder
6:47 am
Tue February 8, 2011

Snyder signs executive order to reduce state parole board

Governor Rick Snyder
Photo courtesy of Governor Snyder's office

Governor Rick Snyder has signed an executive order to reduce the size of the state parole board by a third.

It’s not clear how this shakeup will affect the policy set by Governor Jennifer Granholm to parole more inmates as a way to control corrections costs.

Governor Snyder is reducing the parole board from 15 to 10 members, and placing it under direct control of the Corrections director. He also eliminated the board that advices the governor on clemency decisions.

His administration say the move will streamline government and save the state about half-a-million dollars.

The parole board members will have to reapply for their jobs. But Snyder says the parole board was written into state law to be a 10-member board with the Department of Corrections, and so it will return to its original form.

Michigan History
4:52 pm
Thu February 3, 2011

It's not the first time Michigan has faced budget challenges

The Capitol in Lansing
Lester Graham Michigan Radio

Michigan lawmakers face the challenge of balancing a budget with a hole of around $1.8 billion in it.

Governor Snyder plans to submit a plan to the legislature this month, and it promises to leave very few departments untouched.

Budget issues are not new to Michigan.

Today, we explored some other difficult times in budget years past with Michigan Radio's Political Analyst Jack Lessenberry.

Michigan Radio's Jenn White asked what led to the deficit we are facing in this year's budget.

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State Budget
7:47 am
Thu February 3, 2011

Public employees dispute Governor Snyder's state financial report

Governor Rick Snyder
Photo courtesy of www.governorelectricksnyder.com

Public employees are taking issue with Governor Rick Snyder’s citizen’s guide to the state’s finances. They say it presents an incomplete and inaccurate picture of employee compensation in the public and private sectors.

Unions say the data in the guide does not compare similar jobs in the public and private sectors. They point to half a dozen studies that paint a different picture than the Snyder administration’s data.

Nick Ciaramitaro is with the American Federation of State, County, and Municipal Employees:

"Salaries tend to be a little lower, benefits tend to be a little higher in the public sector, but if you look at total compensation, which is what the governor says he wants to look at, we’re very close or a little behind the private sector."

Ciaramitaro also says the data in the guide may not take into account unpaid furlough days taken by state and local workers.

The governor acknowledges the numbers in his guide are a broader overview of compensation trends, but he says he’s open to looking at other data before he presents his first proposed budget later this month: 

"I’m happy to have people react to it whether they agree with it or don’t agree with it because that may bring other data forward that may be worth considering as part of this process. It’s an open  dialogue. This is how you actually set the framework to have the open discussion you’d really like people to have.”

Snyder says that discussion will influence his administration’s budget plans. The governor will present his budget proposal to the Legislature on February 17th.

Commentary
12:12 pm
Wed February 2, 2011

Groundhog Day in Lansing

Well, it’s Groundhog Day, there’s a foot of snow, and I’d guess  most of the state’s woodchucks aren’t even thinking about coming out of their burrows, let alone looking for their shadows.

Our lawmakers aren’t anywhere near the Capitol Dome either; they prudently took a couple of days off. But they’ll be back soon, and hopefully at work straightening out the state’s finances.

People may differ on how our lawmakers should balance the books, and put our state on a permanently sounder footing.

But nobody wants any further repeats of Groundhog Day. As in the movie of that name where the main character has to keep repeating the same day over and over. 

He had to do that, as I recall, until he learned a profound lesson about life. Our legislators have been doing a version of that for years.  Papering over serious problems; going for quick fixes, kicking problems down the road for future generations to deal with.

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