state budget

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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Politics
10:54 am
Wed February 16, 2011

Budget battles target greenhouse gas rules

A new poll showed that the majority of people in Michigan support EPA regulation of greenhouse gasses
Michael Caven flickr

The details of the United States and Michigan budget cuts are beginning to leak out.  The United States Congress is trying to come together on a plan to cut a huge amount of spending. Governor Rick Snyder will be delivering his budget proposal for next year on Thursday.

One area of debate is how the Environmental Protection Agency can regulate greenhouse gas emissions. A new statewide poll shows voters in Michigan would support these rules, but Republicans in the US Congress are moving against them this week.

Al Quinlan conducted the poll funded by the Energy Foundation, a pro-renewable energy group.

"We asked people simply whether they favor or oppose the EPA regulating these emissions the results were 64% favor, 27% oppose. And there was broad based support across partisan lines."

Michigan Congressman Fred Upton is a leading opponent of EPA regulation of greenhouse gasses.

Sarah Alvarez-Michigan Radio Newsroom

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."

State Budget
4:49 pm
Wed February 9, 2011

Reaction to Lt. Governor's "A-bomb" remark

Lester Graham Michigan Radio

Reactions are coming in after some intense--maybe radioactive is a better word?--comments made by Lieutenant Governor Brian Calley on the governor's budget proposal, which will come out next week.

On Tuesday, Calley compared next week's budget announcement to an atomic bomb. Calley's comments, from WKZO:

"Here's why I think that our message on the 17th of February is going to be dropping an atomic bomb on the city of Lansing: We're going to do an all-cuts solution to our budget deficit."

Sara Wurfel, Governor Snyder's press secretary, claims that Calley misspoke. From the Detroit News:

"This was an extremely unfortunate choice of words," she said.

"It certainly doesn't take into account the very difficult decisions that are being made and the extensive efforts we are taking to help protect citizens and ensure we leave no one behind. We are doing everything we can to address the state's fiscal crisis and trim spending in all areas of the budget, but also to help preserve critical services."

Also, "this is not an all-cuts budget," she said.

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