As the FY2009 budget was unveiled, Michigan's residents reacted with dismay, noting yet another year where a large budget deficit will force cuts or tax increases for fiscal year 2009. Many residents assume Michigan's budget situation is unique, and worse off than most. However, in comparison to the rest of the country, Michigan has it easy. Overall, Michigan's projected budget deficit is tied for the 4th smallest in the nation. Has Michigan's contentious budget history, including the 2007 stalemate, helped Michigan become more fiscally sound compared to other states?

The projected FY2009 budget gap is 672 million dollars. This number is significant, and additional cuts or tax increases are needed to stabilize Michigan's economy. However, this budget deficit is only 2.9% of the size of the total projected budget, a comparatively small margin. While the situation seems significant, consider California. The nation's biggest state has an astounding projected deficit of 35.9 billion dollars. That's 35.5% of the total projected 2009 budget. Various referendums have limited the options available to California lawmakers, forcing a government shutdown while the governator and others worked to build the necessary ¾ majority vote.

All together, the 50 states together will have a projected budget shortfall of one trillion dollars. Since most states have constitutions that require a balanced state budget to be passed, many are considering drastic program cuts and large tax and fee hikes to pay for the government. Why have so many states let their budgets get so bad? One possibility is thought provoking- that the 2007 budget crisis actually helped Michigan during the current economic climate.

The 2007 budget battle was an embarrassing for many Michigan citizens. Like California this year, essential state services were suspended as lawmakers went overtime clinging to core philosophies that were at odds. However, in the end lawmakers made significant concessions to balance the budget. Republicans retreated from their pledge to not raise taxes under any circumstances, and Democrats agreed to deeper cuts in state programs than originally intended. As surprising as it may seem, these divisive battles may have saved the state further pain later down the line.

Links:

http://www.cbpp.org/9-8-08sfp.htm

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Release all non violent offenders incarcerated for hemp violations.
written by Sam A Sapienza, June 29, 2009

Michigan has a legislative requirement to produce a balanced budget voted into law through a voting referendum several years back. The American and State Prison system is overcrowded with non-violent marijuana users who have been incarcerated and had properties seized unconstitutionally. This has hurt their economy more than helped it. As I recall most non violent marijuana users had / have jobs, pay taxes, buy autos, houses, rent apartments, pay insurances, and shouldn't be wasting taxpayers money in prisons. Prisons should be for murders, rapists, thieves, deviants, crooked businessman and public officials, black mailers, extortionists, etc. Most marijuana users in the suburbs, and many in cities work full time jobs, are young and like marijuana to unwind on weekends, or to help them with their medical problems. I have never yet seen or felt threatend by them at all, especially after I have seen what Cocaine, Alchol, and Heroin addiction has contributed to crime. So if it is possible to return non violent marijuana offenders back to work and off the dole please consider it in your budget. Sixty five percent of Michigan residents voted for the legal use of marijuana as a medicine so I am pretty sure the population would not consider it soft on crime, including many police, fire, and other civil service and government employees. They would have to be non violent offenders without a history of violence and severe drug abuse and misuse, of other more violence inducing drugs that are more lucrative in distribution also.

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