Posted on 07/11/2009 1:33:51 PM PDT by Steelfish
In Michigan, Deficits Defy Years of Cutting
By MONICA DAVEY
Published: July 11, 2009
LANSING, Mich. Long before California resorted to i.o.u.s to pay state bills, and before New Yorks political insurrection made a mess of this years budget planning, and even before the recession pushed dozens of other states into their worst fiscal distress in decades, lawmakers here were cutting.
The cuts started in the 2002 budget year, when some prisoners were ordered to sleep two to a cell. Then came cuts to state colleges in 2003, and orchestras, zoos and operas in 2004.
Medical payments for the poor were cut in 2005, followed by cuts to a youth prison in 2006. After that? More cuts to prisons, crime laboratories, libraries and day care programs.
Last month, 100 state troopers were laid off, and the troopers left behind were told to drive around less to, of course, cut costs.
In all, even before thinking about the coming years $1.8 billion shortfall, Michigans lawmakers had through cuts, accounting shifts and tax increases
closed more than $7 billion in budget gaps over the past eight years. While many states have experienced a year of pain or perhaps two during this downturn, Michigan is approaching nearly a decade of budget misery.
(Excerpt) Read more at nytimes.com ...
“I am an opera buff and I have never heard of a Michigan opera company.”
You’ve never been to an appeal board hearing where UE comp or workmen’s comp were denied. It’s a regular kubaki theatre complete with fat welfare divas, singing shysters and falsetto quacks.
Not your fault that you don’t know. You have to live in MI to see it.
California's problem is the corrupt political leadership, Michigan's problem is not only their corrupt political leadership, but their main industry was the auto industry, and all of its connecting industries....That all started going south many years ago...And now it's all but dead.
California has 50 times the industry, and other amenities that Michigan just don't have and never will.
Two very different animals.
Is that true? (!!)
Dollars to donuts higher
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
I know what would solve all of MI's budget woes--increase tax on tobacco products!!!!!
/sarc
Any repoerts on how Western Michigan (the heavily GOP region) is faring in all this?
Yesterday I watched an Islamic Conference (hostile) held in Dearborn which has the highest population of Arabs in the country. Sounds like they chose the right place to begin the takeover of America... the gays in CA should be worried...
The video is:
http://mycountrymatters.wordpress.com/2009/07/10/aggressive-militant-islam-on-display-in-michigan/
this is what we all will be hearing from the obamanation unless we can get him out of office.
Not surprising. The libs always aim too high on spending, and they ignore the harmful effects of their policies which reduce growth and revenue.
We’re hurting here in Battle Creek. I work for the local hospital and can’t tell whether people just aren’t coming in for care like they used to (can’t afford it) or have they left the state while the getting is good? Lots of foreclosures and “restructuring” of businesses. Once Jennifer steps down, I see no one to save day on the Republican side. Hoekstra is supposed to be very conservative, but he will not agree to a “no tax” pledge if he is elected. The RINO Cox will promise anything, and I pray that the Michigan voters won’t get sucked in by him. Unfortunately for this state, we cannot ever win against the concentration of lefties voting in Detroit/Flint/Saginaw - that’s why Communist Carl Levin and “Dangerously Incompetent” Debbie Stabenow are our Senators.
I moved back to Michigan about 4 years ago for family reasons. This is still a beautiful state, but why come here or stay here if you’re a young person starting off in life??? Unfortunately, more and more states are following the insanity of Michigan and California - where are the bastions of freedom among our 50 states? Would the Fair Tax work on a state level? Eliminate all the income taxes and business taxes in Michigan and just have a consumption tax. Could we be the model and save the day?
Be calm. Americans will flock to buy new “green” putt-putt cars from Detroit carmakers when Ubama gets gas prices up to $4.00+ per gallon. Then Michigan will be okay again.
They killed and ate the goose that laid the golden eggs, now they're wondering why there aren't any more golden eggs.
Yeah, years of cutting, right. ;’)
Michigan needs to amend its Constitution to eliminate mandatory spending in some areas, and dump the thicket of taxes.
Want tourists? Market the all-season state parks permits out of state.
Outlaw speed bumps in the public streets and use the money wasted on that BS for street repair instead.
[’Civ fumes so much the ceiling sprinkers go off]
There are exceptions to every rule, even in Michigan!
A 2/3 super majority for tax increases, spending and debt authorization is not a bad idea, but I have a different take.
I should correct my “balanced” budget amendment to actually say that government spending can only be 1/2 of current GDP growth. So if GDP is increasing 4%, government spending can only increase 2%. This difference should provide a windfall in terms of revenue to the government.
Let’s assume a 2% windfall which should be split with most going to reduce the debt, and a smaller percentage going to fund an emergency fund. The emergency fund would only be used for national emergencies like 9/11 or Katrina or a future devistating California earthquake, etc. This emergency fund is only for emergencies and would not be tapped for recession. Once the emergency fund gets to some set amount (say 10% of the budget), all savings go to debt reduction.
In a recession, the same policy is used, but since we are dealing with negative GDP, it means that some deficit spending is allowed. For example if GDP is minus 4%, then government spending is -2% for that year.
If the government would manage their budget this way, then over time growth would eventually eliminate all debt, since recessions never last as long as expansions so any deficit spending would be more than cancelled out during expansion.
The beauty of this system is that politicians are always motivated to spend more. But by linking spending to 1/2 of GDP growth, it puts tremendous incentive on politicians to GROW THE ECONOMY in order to grow spending. This is the opposite of what politicians do now. Now the want to grow spending in the misguided notion that it will grow the economy. Pure Keynesian economics that results in unsustainable deficit spending.
Michigan Budget 2003 - 2009 (the Granholm years):
2003 Total Budget: $38,546,223,200
2004 Total Budget: $39,236,530,900
2005 Total Budget: $40,224,217,400
2006 Total Budget: $41,672,547,100
2007 Total Budget: $42,791,804,000
2008 Total Budget: $43,827,383,200
2009 Total Budget: $44,200,000,000 (proposed)
Thanks.
So, once again, after 8 years of savage "cuts", spending is up by $8 000 000 000.
I am getting seriously concerned that no state or local government can actually reduce spending. Not that you or I couldn't see how to do it - but that the system we have allowed to be created actually CANNOT do it.
I grew up in Michigan, worked in Illinois from 85-93, and moved back to Michigan in late 93. Got laid off in 2004, left then and haven’t been back. I loved the state, I grew up right on Lake Michigan, but I doubt I will ever go back....
When a legislator or governor proposes an increase of 4 times the rate of inflation, and an increase of only 2 times the rate of inflation is approved, that is an increase to the rational person.
In the bizarro world of liberalism, that is a "cut." I want to see some numbers.
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