• yourjizzx cum
  • State Budget

    As Oct. 1 quickly approaches, Michigan's Legislature is racing to try to balance the budget. Michigan faces a $302 million deficit and a projected $484 million shortfall. Additionally, Michigan has missed the budget deadline in the past two of three years. Last year, the deadline was extended one month to Oct. 31 and in 2007, the State government was forced to close down for several hours while the legislature tied up the loose ends. However, many Democrats and Republicans are feeling optimistic coming into the final week of the fiscal year.

    . In her last term of service, Governor Jennifer Granholm aims to, "Help our state [Michigan] live within its mean while continuing to provide critical services" (LSJ.com, 09/3/10). Along with Republican Senate Majority Leader, Mike Bishop, and Democratic House Speaker, Andy Dillion, Granholm has made several proposals to improve the budget situation. Key among these proposals is a tax amnesty plan and a state employee retirement plan.

    The tax amnesty plan proposes savings by allowing taxpayers a window from May 15 to June 30 to pay back taxes from the end of 2009 without civil or criminal penalties. Similar to the retirement plan passed ealier this year for school employees, the current proposed retirement plan would improve the pension benefits of state employee retirees. About 3500 to 6000 of 12000 ellibible employees are estimated to retire. Additionally, a change in the bill also would require employees to contribute 3% of their salaries over five years to a retiree health care plan.

    Both plans are estimated to create savings of about $60 million. Unfortunately, it is not guranteed that both of these plans will pass. The future of the tax amnesty plan looks good as Both the Senate and the House have passed their own versions the bill and a settlement for a final bill is all that will be required for it to pass into legislation. However, lawmakers are still in heavy debate over the retirement plan. Despite a lot of original support for the bill, including a lot from state employees, support has since waivered due to the change in the bill requiring salary contributions. Moreover, these contributions are not guranteed for their intended purposes: retiree health care. If the retirement plan fails to pass, it likely would mean unfavorable consequences.

    Regardless of whether or not the retirement plan passes, budget cuts of about 3% to many state departments are also in the plan. However, if the retirement plan does not pass, further budget cuts will be implemented to make up the $60 million difference. In particular, Granholm has highlighted public safety and other service sectors such as police and fire protection for these budget cuts. Budget cuts which have already been passed include a $42 million cut to the Department of Corrections, Medicaid cuts to the Department of Community Health, and program-funding cuts to the Department of Energy, Labor, and Economic Growth. Additional consequences could also mean increases in the deficit as lawmakers have already passed legislation assuming the $60 million savings.

    Fortunately, Michigan has received some unexpected help in the form of $300 million from the federal government for school aid. This money has allowed lawmakers to use $200 million to help cover a $302 million shortfall in the general fund. More good news has come from a recently passed piece of legislation, which could produce $150 million next year due to a change in how Michigan accounts for unclaimed property.

    If everything falls in line, it is likely the legislator will meet the budget deadline, but unlikely the budget will actually balance. In any case, Michigan lawmakers and state departments will have to continue to work hard and be creative in order to save and share money in these difficult economic times. Unfortunately, due to the slow economy and increased spending, the deficit is only likely to grow in the upcoming years. However, in an election year, hopefully Michigan will gain some new life and maybe a lift or two out of this economic downfall.

    Sources:

    http://www.lansingstatejournal.com/article/20100909/NEWS04/9090336/Retirement-plan-part-of-Michigan-state-budget-deal

    http://www.lansingstatejournal.com/article/20100922/NEWS04/9220326/State-employee-retirement-bill-for-Michigan-budget-stalls-in-House

    http://www.lansingstatejournal.com/article/20100921/NEWS04/309210032/Michigan-lawmakers-tackle-more-state-budget-bills?obref=obinsite

    http://www.lansingstatejournal.com/article/201009170400/NEWS04/9170329?odyssey=mod_related_topix

    http://www.lansingstatejournal.com/article/201009150400/NEWS04/309150041?odyssey=mod_related_topix

    http://www.lansingstatejournal.com/apps/pbcs.dll/article?AID=2010309030011

    Recent State Budget Blogs

    State Budget News Links

    Read more...
    Home
    Agriculture
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Commerce & Regulation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Criminal Justice
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    In The Courts
    Timeline
    Employment
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Great Lakes & Recreation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Energy and Environment
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Health Care
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    K-12 Education
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Morality and Family
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Political Reform
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Social Services & Seniors
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    State Budget
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Taxes
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Transportation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Urban Affairs
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline

    About Us

    The Michigan Policy Network is a student-led public education and research program to report and organize news and information about the political process surrounding Michigan state policy issues. It is run out of the Department of Political Science at Michigan State University, with participation by students from the College of Social Science, the College of Communication, and James Madison College. 

    Read more about us...

    Sponsors

    Michigan State University    Department of Political Science 
     College of Communication Arts & Sciences    James Madison College
     College of Social Science    University Outreach and Engagement

     

    The thoughts, opinions, and positions represented herein are solely those of the participating students and in no way represent an official position or policy recommendation of Michigan State University.

    Our sponsors...

    Meet your Policy Fellow: Evan Martinak

    Evan Martinak is state budget policy fellow for the Michigan Policy Network. Evan is from Walled Lake, Michigan on the east side. He is a student in James Madison College, pursuing a major in international relations and also doubling it with an economics major. He intends to pursue a minor in Philosophy of Law. He is highly involved in student government at MSU. He is a member of ASMSU (The Associated Student of Michigan State University) as well as James Madison College Student Senate. He is also an avid Manchester United fan.