state budget

Steve Carmody / Michigan Radio

LANSING, Mich. (AP) - Schoolchildren and others will be impacted when Michigan's next state budget starts in about three months.

Gov. Rick Snyder plans to finish signing the $53.2 billion spending plan as early as Monday. It affects many corners of Michigan life - from how much it costs to attend college to increased arts funding and how many state troopers patrol the highways.

LANSING, Mich. (AP) - Michigan lawmakers are tackling some hefty issues like fuel taxes, Detroit's bankruptcy and the minimum wage in the last weeks before their summer break.

They're also trying to finalize Michigan's next spending plan.

Steve Carmody / Michigan Radio

LANSING – Economists are projecting that the state of Michigan will collect about $873 million less in revenue this budget year and next than was projected earlier in the year.

Tuesday's estimate is one of three that Gov. Rick Snyder's administration and budget experts will use to reach a consensus later in the week. But it's not good news for lawmakers hoping to finalize the next budget in coming weeks.

Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - Michigan legislative budget experts say state government is taking in hundreds of millions of dollars more than expected eight months ago.

A report released Tuesday from the House Fiscal Agency in Lansing estimates Michigan collected $433 million more than projected in the last budget year and will collect about $327 million more this year.

Snyder officials to meet with Michigan residents

May 20, 2013
michigan.gov

Officials from Republican Gov. Rick Snyder's administration are planning to travel across the state this week to take suggestions and answer questions from Michigan residents.

Representatives from the Office of Constituent Services will visit locations in Washtenaw, Livingston, Ingham, Shiawassee, Clinton and Ionia counties on May 23 and 24.

Snyder's office says topics that are open for discussion include the state budget and opportunities for getting involved in state government.

The state budget director says credit agencies won’t upgrade Michigan’s rating because of proposals on the November ballot.

John Nixon today spoke alongside opponents of Proposal Five. It would require a statewide vote or two-thirds majorities of the Legislature to approve a tax increase.

But Nixon said all the initiatives cast doubt about the state’s economic future.

Photo courtesy of the Snyder Administration

The $48 billion spending plan for the budget year that starts Oct. 1 is about to be signed into law. Michigan Gov. Rick Snyder has scheduled a bill-signing ceremony for Tuesday afternoon at the Romney Building across from the Capitol.

The package includes a small cut in individual income taxes, twice as much money for film credits, a slight increase in education funding and a down payment on school employees' health care costs in retirement.

The Republican-controlled House and Senate passed the budget bills three weeks ago. Snyder has the right to veto portions of the bills.

Democrats have criticized the GOP budget plan for not spending more on education.

Every Thursday we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants, and Susan Demas, political analyst for Michigan Information and Research Service.

The Snyder Administration and the legislature are working to complete work on the state budget, and it sounds like they’ve made some progress towards a final deal.

There is something to be said for one party controlling both the executive and legislative branches of government. This year, for the second year in a row, the state budget will apparently be passed by the beginning of June. That’s a big change from a few years ago.

Twice during the Granholm years, the parties were still squabbling over the books when the fiscal year expired at the end of September. And bad last-minute choices were made.

Photo courtesy of Gov Snyder's office

Governor Snyder has said the state needs to do more to attract immigrants, and get them to stay once they’re here.

In his recent budget proposal, Governor Snyder calls for the creation of a Cultural Ambassador program to attract and welcome immigrants to the state, which is similar to a program he helped create when he worked at Ann Arbor SPARK.

Photo courtesy of the Snyder administration

Governor Rick Snyder calls for a slight boost in spending in his budget proposal for the coming fiscal year – with more money for police, schools, and universities. The governor says this year’s spending plan is built on tough decisions made last year.

Snyder was flanked by Lieutenant Governor Brian Calley and Budget Director John Nixon as he took a seat in front of a packed house. He presented his budget plans to a joint meeting of the House and Senate appropriations committees. The governor started out with a short history lesson, reminding lawmakers of how things have changed since his budget presentation from a year ago. “It was a mess,” Calley said.

In 2011, the governor called for taxing pensions; taking $400 million dollars from the School Aid Fund to help pay for universities –  which still saw a cut in funding – and concessions from public employees. “We had to address a billion and a half dollar deficit. We addressed that. We had to ask for shared sacrifice from many people, a lot of difficult decisions and I appreciate a lot of understanding by a lot of people,” Snyder said.

This year, the economy has improved, and so has revenue. The governor called for modest increases to money for schools and universities – much of it linked to improving student performance. Local governments could also see more if they find ways to become more efficient.

Governor Rick Snyder's website

Governor Rick Snyder spoke to Michigan Radio’s Jennifer White about his budget proposal for fiscal year 2013.

In the proposal are some funding increases for education, public safety and infrastructure.

Photo courtesy of the Snyder administration

Governor Snyder will present his budget proposal for the next fiscal year this morning at the state Capitol.

Lieutenant Governor Brian Calley told Michigan Public Radio Network’s Laura Weber that he expects budget negotiations will go more smoothly this year than in recent years. ‘The reason why last year’s budget was difficult is because it actually did fix the structural problems that had plagued us for so long. And because we did all the hard work last year, it makes movement in a more positive direction where we can all grow and invest together,” Calley explained.

Details of the Governor's budget have started to leak out and here's what we know so far:

From the Detroit News:

Gov. Rick Snyder will propose investing an additional $45 million in public safety as part of his 2013 budget proposal... Snyder noted in his State of the State address in January that Michigan has four cities — Detroit, Flint, Pontiac and Saginaw — that regularly turn up on the nation's Top 10 list of most violent cities. The governor has promised to roll out a detailed crime-fighting strategy in a Special Message to the Legislature on Public Safety in March.

From the Associated Press:

A projected budget surplus means an estimated 37,000 state of Michigan workers represented by unions won't have to take furlough days this fiscal year. The unionized workers had been expected to take up to four furlough days each in the fiscal year that ends September 30th. The furlough days were announced last fall because unions did not reach an agreement on concessions with Governor Rick Snyder's administration.

Later in the day, the Governor will hold a virtual town hall meeting to discuss his budget. The AP reports:

Snyder was so happy with how his town hall meeting on Facebook went after last month's State of the State address that he's holding another one. This time the governor will take residents' questions just after he presents his 2012-13 budget proposal to lawmakers on Thursday. Viewers can watch the hour-long town hall meeting beginning at 6:30 p.m. on the Rick Snyder for Michigan Facebook page.

You can submit questions at online at www.michigan.gov/townhall. Or, post questions on the Governor’s facebook page.

When the Legislature returns to the state Capitol next week, there will be another item added to its to-do list. That is: coming up with millions of dollars to fill a budget gap created by the state Supreme Court decision on Michigan’s new pension tax. The court upheld the tax on pensions, but said denying a tax break to some higher-earners effectively created a graduated income tax.

A graduated income tax is not allowed under the state constitution. That part of the decision also blew a $60 million hole in the state budget. Sixty million dollars is a small part of a general fund budget that exceeds $8 billion.

But it is an amount the governor and the Legislature will need to make up to meet their obligation under the state constitution to have a balanced budget. One possibility would be to use a projected surplus from last year’s budget to fill the gap. That number becomes official in January. But it appears the surplus will be somewhere near $400 million.

Lawmakers are already fighting over what to do with that money. Democrats say it should be used to restore some budget cuts to schools. Republicans say it should go into the state’s “rainy day” savings fund, or to pay down debt.

Lester Graham / Michigan Radio

A legislative agency says the state is taking in a lot more money than it expects to spend as the books are about to close on the last fiscal year. The revenue estimates from the state House Fiscal Agency say the state appears to be in line to reap $285 million more than expected.

That includes a $145 million windfall for the School Aid Fund. Some Democrats say a portion of that money should be used to restore cuts to K-12 schools.

We are now just a few days into the state’s new fiscal year. State Budget Director, John Nixon gives us an update on the state of Michigan’s finances.

Nixon says many states relied on federal stimulus money, and now it's time to look at other options.

“We had a huge infusion of stimulus money and then there was a big cliff because once that stimulus money went away all the states are scrambling saying, “oh my gosh how do we keep our programs whole?” Well that’s what we’ve done. We cut a billion and a half dollars of spending out the budget and we balanced the budget.”

housedems.com

The Michigan legislature returns from break next week. While they will be faced with a new set of issues when they return, at least one legislator is critical of the work that’s been done so far.

Every week we interview lawmakers about what's happening in our state and the nation. Michigan Radio's Jennifer White today talks with Freshman Democratic State Representative Jeff Irwin about the state budget, working with the legislature and what we can expect in the coming months.

Aflyingpsychofly / Flickr

Governor Rick Snyder’s administration and state employee unions will open contract negotiations this week. The first topic of bargaining will be whether state workers will give up the salary and benefits they’ve already been promised.

The new state budget is not balanced yet. For one thing, the budget assumes millions of dollars in savings in employee costs. State state worker unions have yet to agree to those cuts. In fact, the state can’t even begin to negotiate unless the unions agree to re-open the current contracts. Kurt Weiss is with the state Department of Technology, Management and Budget.

“We know it’s a significant number. We know it’s a painful number.”

Weiss says the alternative to concessions is layoffs and privatizing services. The largest amount of money would come out of the state Department of Corrections.

State employee unions say state government is currently top heavy with managers and has too many contracts – and the Snyder administration should look those first before looking to squeeze more from frontline workers or lay them off.

michigan.gov

State workers are scheduled to rally in Detroit tomorrow to protest wage and benefit cuts. Governor Snyder is seeking $145 million in concessions from state employees for the fiscal year that starts in October.

An official with one of the largest state employee unions, Ray Holman of UAW Local 6000, says over the last decade the state has shed more than 12,000 positions.

"And what that means for the average, for example, Department of Human Services caseworker, is they may have 700 to 1,000 families they’re responsible for."

gophouse.com

The speaker of the Michigan House has ordered representatives to cut their office budgets by almost 14 percent. Smaller cuts were also ordered for Democratic and Republican party staff and non-partisan House of Representatives staff.

House Speaker Jase Bolger says the cuts are necessary to keep the state’s budget balanced. He says the reductions do not necessarily mean there will be layoffs.

Snyder signs budget

Jun 22, 2011
Photo courtesy of the Snyder administration

Governor Rick Snyder has signed a budget for the coming fiscal year. He says the spending plan includes some tough-but-necessary choices that were necessary to retire a deficit and to set Michigan on a path to fiscal responsibility.

When Governor Rick Snyder took office in January, he said he wanted to have the state budget signed, sealed and delivered by the end of May.

Nobody in Lansing took that seriously. In fact, if the budget had in fact not been completed until July, that would still have been seen as a remarkable victory. 

After all, we’ve become accustomed to lawmakers frantically struggling on September 30th, the last day possible, to pass a budget before the state would have to shut down.

True, this year is different in that the governor’s party controls both houses of the legislature. But the reforms that Snyder was calling on them to make were so revolutionary it was hard to see how he could possibly win early passage.

Well, we were wrong. Rick Snyder may officially be a “non-politician.” But he is in fact one of the shrewdest political operatives I have ever seen. People have consistently underestimated him, beginning with the famous “nerd” commercial which launched his candidacy. Everybody scoffs at Snyder, and he smiles and keeps on winning. Primaries, general elections, legislative fights. The governor got virtually everything important he wanted here.

Where he did have to compromise - on the pension tax, for example - one got the feeling that he had planned on compromise all along. With a series of wrenching moves, he changed the way the system works. He seems to have eliminated the structural flaw that for years has caused automatic billion dollar deficits. He did so at a terrific cost, balancing the budget, and providing huge tax breaks for business by cutting aid to the poor, to children, and to education.

But he got what he wanted, and now we’ll see what happens. Make no mistake: This is entirely a Rick Snyder, Republican Party budget. It did not get a single Democratic vote. If this pays off, if the lowered business taxes do create new jobs, Snyder should be able to waltz to re-election, and the political culture of this state may be forever changed. But if it fails - if the promised new jobs don’t materialize, and people keep falling through the tattered safety net - well, it will be clear who to blame. It will take awhile to know exactly what’s happening. But what does the governor do next?

(photo by Steve Carmody/Michigan Radio)

There’s one week left for the legislature to meet the governor’s deadline for passing a state budget before the end of May.  Governor Rick Snyder says negotiations are still on pace to wrap up by May 31st .   

“There are still lots of things…because it’s a very large document…that we need to get through.  But that’s all part of the process….and its coming along in a positive way.”     

But if the final deal isn’t ready until a few days later, Snyder says that would be OK.  

Thetoad / Flickr

Governor Rick Snyder met with legislative leaders to refigure budget plans, now that the state is expected to collect more tax revenue than originally predicted.

An application on Snyder’s i-Pad reminds him every day of a looming, self-imposed budget deadline of May 31st. He says he and lawmakers are going to meet that deadline.

"There’s still work to be done, but we’re moving in a very positive direction, and we’re moving on a path to have the Legislature get the budget done by May 31st – so those countdown clocks could pay off.”

Details could be made public as soon as today.

Part of the deal appears to include about $25 million in tax credits for the film industry, and rolling back cuts to K-12 schools. That’s more money than Governor Snyder or the Legislature had originally proposed.

(photo by Steve Carmody/Michigan Radio)

Budget officials were briefed Monday on how Michigan’s economic recovery is shaping up, and what that means for the state budget. The news was mostly good – it appears there’s another $430 million available to help balance the budget. 

 Now that it’s agreed Michigan’s economy is improving and there’s more revenue, the arguments have started about how to use that money.  

(Official state portrait)

The state is on track to bring in about $430 million more than originally forecast for the coming fiscal year. That’s according to state officials and economists who met today at the state Capitol for a revenue estimating conference.  

Governor Rick Snyder says he’s happy to hear the state is on the track to economic recovery. But he does not want to spend the money too quickly.  

A budget panel will meet this morning to consider economic forecasts and project how much money the state has to spend in the coming fiscal year.

Michigan’s economy is in the early stages of rebounding and it appears the state is bringing in the tax revenue to prove it. Many lawmakers want to use the windfall - half a billion dollars or more - to reverse cuts to K-12 schools.  And Governor Snyder says some of the money could be used to roll back the size of proposed budget cuts:

“If there’s funds are available, we should be looking at how we deal with some of these cuts. These were tough calls.”

But Governor Snyder and other Republicans also say they want to be careful about spending additional revenue instead of fixing ongoing budget pressures. The governor says some of the money could also be used to shore up the state’s emergency savings in case the economy takes a another tumble.

(photo by Steve Carmody/Michigan Radio)

A leader in Michigan’s higher education community says state universities may urge the governor to veto the state education budget bill.   He says it’s a question of ‘micromanaging’.    

Michael Boulus is the executive director of the President’s Council, a group that lobbies on behalf of Michigan’s public colleges and universities. 

There is some good news for Michigan school administrators worrying about the outcomes of today’s  school millage votes. A new Michigan State University poll of nearly a thousand state residents finds  most want education protected from state budget cuts.   

The State of the State survey finds education is the highest priority among Michiganders. The poll found support for state education funding consistent across all demographic groups and political affiliations.

William Schmidt is a statistics and education professor at MSU. He says the poll shows the importance that people place on education. Though he admits people often vote their own economic interest when asked to decide on school millages. 

 “They seem…conceptually at least…to think education is important.   And should be front and center.  But then…very often they vote their economic concerns…which is they don’t want their taxes raised.”  

Education spending is expected to take a big hit as state lawmakers deal with Michigan’s massive budget deficit. They are talking about slashing per-pupil funding by $300 to more than $400.

(photo by Steve Carmody/Michigan Radio)

Governor Rick Snyder heard from his critics as he delivered the University of Michigan’s commencement address today.  

A grey, overcast, chilly morning welcomed graduates and their families  to Michigan Stadium for the Spring commencement.  Later the sun came  out  and warmed the crowd, though Governor Rick Snyder probably still  felt a slight chill from part of the crowd. 

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