state budget

State Budget
9:23 am
Wed June 22, 2011

Snyder signs budget

Governor Rick Snyder (R)
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.

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commentary
10:30 am
Fri May 27, 2011

Now for the Hard Part

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?

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Politics
1:32 pm
Tue May 24, 2011

Gov. Snyder confident budget deadline will be met

Gov. Rick Snyder (R) Michigan
(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.  

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State Budget
6:37 am
Thu May 19, 2011

Legislative leaders meet to finalize budget targets

Capitol Building, Lansing, Michigan
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.

Politics
6:39 pm
Mon May 16, 2011

State government has more money to spend (but should it?)

State Capitol Building, Lansing, Michigan
(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.  

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Politics
6:28 pm
Mon May 16, 2011

Gov. Snyder welcomes improving tax revenue picture

Gov. Rick Snyder (R) Michigan
(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.  

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State Budget
6:11 am
Mon May 16, 2011

Snyder says revenue windfall could be used to roll back budget cuts

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.

Education
12:30 pm
Fri May 6, 2011

Are conservative Republicans trying to 'micromanage' state university budgets?

Students walk to class on the Ann Arbor campus of the University of Michigan
(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. 

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Education
1:01 am
Tue May 3, 2011

Poll: Most Michiganders want education spared state spending cuts

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.

Education
1:08 pm
Sat April 30, 2011

Gov. Snyder hears some jeering at U of M commencement

Gov. Rick Snyder tells graduating University of Michigan students its important to continue exploring as they move into the next phase of their lives. The governor didn't mention his proposal to trim state funding of higher education by 15%.
(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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Education
10:24 am
Mon April 25, 2011

Poll: Parents want children to have more access to physical education in school

A new poll finds parents want more physical education in school.  The U of M C-S Mott Children’s Hospital National poll asked parents of 6 to 11 year olds about their children’s access to gym classes and recess.

  A third of parents say their children get too little physical education.  

Sarah Clark is the associate director of the poll. 

State Budget
1:01 pm
Sun April 24, 2011

Corrections Department budget may see big cuts

Michigan Senate Republicans say the Department of Corrections could save tens of millions of dollars by making sure all prisoners are parole-eligible as soon as they have served their minimum sentences.  

Republican state Senator John Proos says that means making sure prisoners have taken their necessary prisoner reentry programs in time for their parole hearings. 

 “Are they getting the proper education so they can be eligible for parole at their earliest release date? The longer we keep somebody past earliest release date, the most costly it is to us."

Proos says additional savings can be found in the department by privatizing food services and mental health services for prisoners. Proos chairs the Senate panel that oversees the Department of Corrections budget. The panel approved a spending plan that is well below Governor Rick Snyder’s proposal.

Politics
5:46 pm
Sat April 23, 2011

Republican lawmakers making progress on drafting state budget

Early drafts of Republican budget plans include some measures that Governor Rick Snyder did not call for in his proposal for the coming fiscal year. Among them are new rules on embryonic stem cell research conducted at state universities and publicly funded clinics.  

Similar measures were blocked in recent years by Governor Jennifer Granholm and Democrats in the Legislature. New Republican majorities are renewing efforts to enact new restrictions and reporting requirements over the objections of researchers. They say the proposed rules would quash their work.

Governor Rick Snyder supports embryonic stem cell research and the voter-approved amendment that allows it at publicly funded facilities. The governor has not taken a position on the budget language. Sara Wurfel is the governor’s press secretary.   

“We’re going to be looking at everything closely when it comes through. The governor’s been very clear and consistent that he respects the Legislature and the legislative process. It’s still got a long way to go. It’s just one step.”   

And legislative leaders say these early versions of the budget bills do not necessarily reflect what will come from the final round of negotiations. The governor and legislative leaders say they’re on track to wrap up the budget by their self-imposed May 31st deadline.

Commentary
12:09 pm
Fri April 15, 2011

Drunken Sailors

I’ve been following the Michigan legislature’s attempts to approve various sections of the state budget, and the cliché that first came to my mind this morning was the wrong one. I was tempted to tell you that they have been behaving like drunken sailors.

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Politics
9:21 am
Mon April 11, 2011

Pace of state budget talks picking up in Lansing

Budget talks are ramping up at the state Capitol with just more than a month and a half left before Governor Rick Snyder’s self-imposed budget deadline.      

Governor Snyder still stands by his May 31stbudget deadline, even as many lawmakers say they do not think a deal will be reached before this summer. Legislative leaders point out that the earliest a budget has been done was in June. That was back in the early 1990s, when the state was flush with revenue. But Governor Snyder says there’s no reason he and lawmakers cannot reach a deal before the Legislature’s summer break.     

One area of the budget that appears to be a sticking point is education spending. The governor has proposed deep cuts to per-pupil funding for K-through-12 schools, and a 15% reduction to state payments for public colleges and universities.

Politics
4:06 pm
Mon April 4, 2011

Governor Snyder confident his budget & tax plans will get legislative approval

Governor Rick Snyder, (R) Michigan

A state House committee is debating a tax-reform package that includes eliminating the state’s business tax and replacing its revenues with a corporate income tax and taxing pensions. Governor Snyder says he wants a state budget in place by the end of May.

However, fierce divisions over how and where to reform taxes – especially over whether to tax pensions – are slowing negotiations.

Snyder’s pleased with the progress on the budget so far:

“Things are going reasonably well in terms of that process.   And we’re working on a very fast time frame.  We’re well ahead of the way things traditional done in past years.  And we’ll still on a path to get fundamental reform done."  

Snyder says he's not put off by the harsh criticism that his budget and tax plans have generated: 

“That’s part of the legislative process.  That’s part of democracy.   But as a whole, I believe the framework we put out there will go ahead and if anything I hope it could be an improved product with the good dialogue we’re having today.”  

Some Senate Republicans have said they will not vote for any pension tax. And many Democrats are upset, claiming they have been locked out of negotiations altogether.

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tax incentives
4:02 pm
Tue March 15, 2011

MEGA approves tax breaks for 10 companies, nearly 2,000 new jobs

The Michigan Economic Development Corporation headquarters in Lansing. MEDC staff serve the MEGA Board and administer activities and programs.
MEDC

Together the projects will generate up to $602 million in new investments and create close to 2,000 new jobs.

By far the biggest project approved by the board this month is in Charlotte. Spartan Motors Chassis designs and manufactures a variety of special products for vehicles. They’re expected to add 450 new jobs along with an expanded facility.

George Bosnjak manages business development at The Right Place. It’s an economic development group in West Michigan. He helped two companies expanding in Grand Rapids get the tax breaks. Atomic Object LLC will expand its current location over a site in California. They expect to launch two new programs that’ll add 30 high tech software design jobs. Knape & Vogt Manufacturing Company makes all kinds of storage related components in Grand Rapids. They purchased a company in Illinois and will move production to Michigan, creating more than 120 new jobs.  

Bosnjak is optimistic about industry growth in West Michigan.

 “We really see a positive trend across all sectors, certainly nothing where it’ll turn around and change what’s happened over the last three years overnight but I feel that our economy and companies here are certainly moving in the right direction.”

However, Governor Rick Snyder is proposing to eliminate these and many other tax breaks. Bosnjak says they’re playing it by ear.

“I don’t think anyone really knows exactly what the programs will be and what the changes will be and how it’ll affect companies. But we’ll certainly deal with the tools that we have and make the best and do the best job that we can.

Snyder says the incentives inherently pick winners and losers when he says the state needs to create a simple and fair tax structure so all businesses are on an even playing field.

Education
2:37 pm
Wed March 9, 2011

Grand Rapids school officials to discuss potential $25 million budget gap

Carmen Seaby Flickr

Grand Rapids Public Schools is hosting a meeting Wednesday night and Friday morning to discuss Governor Rick Snyder’s state budget proposal. The district would face a $25 million budget shortfall if lawmakers approve Snyder’s budget.

Snyder is asking lawmakers to approve cutting $470 per student for all public school districts. That’s roughly a 4% cut from what the state sent them last year.

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State Budget
7:43 pm
Mon February 21, 2011

Snyder seeks allies in budget fight

Governor Rick Snyder is looking for allies in his fight for deep state spending cuts. The governor received a warm reception at a Chamber of Commerce luncheon today in Kalamazoo. 

Governor Snyder spoke to an audience that largely backed his candidacy last year  and is very receptive to his budget plans that call for revising d Text - 16 lines]the state's business tax and deep cuts in spending. But many are also concerned some the governor's plans might hit close to home.

Snyder urged the business leaders to accept part of the sacrifice.

"The only way we are going to do this is talk together and help those people who think they didn't get a fair shake or that they're being disadvantaged when they probably were not." 

Labor unions and social service groups worry that the poor, children  and others might pay a bigger price under the governor's budget plan. Snyder says the state must address its billion and a half budget  deficit now and now just kick it down the road.

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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