The House and Senate bi-partisan conference committee today approved sweeping cuts in state spending, pending votes on the bills in both the House and Senate. All together, the bills will cut between 1.2 and 1.7 million dollars from the current state budget, depending on whether House Democrats succeed in adding tax increases and other revenue generating measures to the final budget agreement. State lawmakers expect to fill the rest of the 2.8 billion dollar deficit with federal stimulus money, meaning at least 500 million in additional cuts will be needed next year.
As the struggle to resolve the state budget continues, lawmakers are racing against an eighteen day deadline to pull together a budget that will last through the next two years.
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.
State Budget
Michigan Budget Reform Proposals
Written by Nick Quigley
Thursday, 22 April 2010 14:53
The economic woes facing the State of Michigan over the past decade have lead to record unemployment, lower tax revenues, an increase in need for services, and an annual budget deficit in the billions of dollars. In order to plug the deficit, the state has used over a billion dollars in stimulus money, cut money from education, public safety, and reduced the number of state employees. The Governor, among other major political actors, has long been pushing a major reform of the budget, as a structural deficit currently exists. The Governor has proposed a blending of revenue increases with spending cuts, but has failed to find support in the legislature for any plan including any tax or fee increases. As a result, the budget problem has worsened, and it appears that this budget season - beginning now until the October 1st deadline will be just as politicized and debated as previous years, in which much of the problem was just pushed into the next year.
Comparative Analysis of Michigan, Illinois, and Indiana Budgets
Written by Gennafer Musial
Thursday, 22 April 2010 03:44
The budget struggles facing each of the 50 states during the fiscal year of 2009 were the toughest of the decade. Michigan was ranked as one of the worst ten states in terms of its economy. This has caused a major increase in the budget deficit and has challenged legislators to rethink Michigan's budget structure. By comparing its budget to that of it neighboring states, the positive and negative qualities of each can be recognized.
With the 2010 gubernatorial elections fast-approaching, candidates must state their vision for the future of Michigan. In light of the state's economic struggles, most candidates agree that the time has come for a budget makeover. However, each has one's own remedy to Michigan ailing health.
The economic woes continue to plague Michigan; however, legislators have yet to come up with a plan to revitalize our current situation. State Representative Alma Wheeler Smith was the first to step up and present a full scale plan that would increase state revenue and redirect that money back into programs recently hit with budget cuts.
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.
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.
Patrick Heffner is State Budget Fellow and Correspondent for the Michigan Policy Network. Patrick is in his third year at Michigan State. A duel degree history/political science major, he is planning to attend graduate school after he completes his time at MSU. Patrick is interested in the policymaking process, and eventually hopes to be directly involved in politics, either as an elected official or political staff member. Born in Ypsilanti, MI, Patrick has lived in three states throughout his life, eventually settling in Minneapolis, MN before coming to MSU.
