In lieu of the upcoming state budget battle, it is important that individuals looking to stay on top of the back and forth on the issue have a general knowledge of the budget's composition. Both political parties have particular projects they attack as wasteful and excessive in the state budget, and it is important to have a general picture of the budget in order to see what is used where. Additionally, different states have different budget numbers that make each state budget unique, and thusly by comparing Michigan with other states, we can learn what Michigan spends more, or less, of its money on comparatively.

We'll examine the Michigan FY 2007 budget. Here is a pie chart showing Michigan's general budget spending in FY2007:

As you can see, the state's funding priorities have shifted considerably in just six short years. The top four programs for general fund-general purpose spending are, in order:
- Community Health- 32.4%
- Higher Education- 20.2%
- Corrections- 19.7%
- Human Services- 12.9%

How does the state generate its revenue?

Many will be surprised to find that the general fund only accounts for 23% of the state's portion of its budget. Much of the federal spending is Michigan run, federal mandates consisting of block grants or other tools of devolution. In short, although Michigan's budget is 42.8 billion dollars, much of it is not up for debate during the widely reported yearly budget discussions.

That is a general overview of the budget itself. In the coming days however, we'll dig deeper into each major section of the general fund, comparing Michigan's expeditures with two states: Nebraska and California. Nebraska is one of the few states to continue a budget surplus this fiscal year (link to my own article), and hopefully a comparison to that state will give some ideas to Michigan policymakers for future budget adjustments. Conversely, California has an astounding budget deficit, and recently ended a protracted budget struggle eerily similar to Michigan's 2007 adventure. By examining California's budget, we can see where bigger states might have even bigger problem's than Michigan's seemingly endless shortages.

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Michigan Deficit
written by Jim Neubacher, April 30, 2009

It is time for Michiganders to wake up. Our soveriegnty has been hijacked through mandates and other restrictive legislations. The government cannot save us and those folks that think differently are totally lost. Where in the constitution does it authorize the Federal Government to take taxpayer monies and return a portion back to the states with mandates? ... funded or not. We in Michigan are sheeple for letting our state be destroyed by irrational DC and State thinking that we can afford all of the promises politicians make in order to pacify the masses. Since the State Appropriations has limited control over these monies... why do they not support HCR4/SCR4 or SR17... These call for the Federal Government to cease and desist from unfunded mandates. It is time for the voices of the sleeping michiganders to stand up for constitutional sovereignty. It is time for deregulation for people and the end the MI SBT.

I ask why do we have over 100 State Reps and 38 Senators if they can only control 30% of the budget or so. Look at what these folks have accomplished in the last few years... nothing... over 1 million jobs lost... one family leaving MI every 12 minutes, increase beer, various professional licensing fees, and cigarette taxes, fail to reduce property taxes even though values are down at least 40% in some areas. The most productive activity seems to center about creating hundreds of resolutions that create plaques for every group that applies for recognition.

Michigan population is at or near 2000 levels and declining and State government only has small control over the budget...Why don't we consider cutting the number of Reps and Senators by 50%... assuming $300,000 yearly cost for each office ... we can immediately save $21 million, not including retirement and other benefits. We need some serious solutions and raising taxes is not the answer.

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Onwer
written by Business Development Consulting Serviices, May 21, 2010

I in the process of setting up a National Lottery Club with Michigan as a possible Launshing State. I would like to know how to allocate revenues to the State of Michigan. Perhaps to the least funded program, my thougts were something for the homeless.
Howard Fissette
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