In Michigan, Deficits Defy Years of Cutting

NYTimes ^ | July 1ith 2009

[sergeantdave]

“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.

[dragnet2]

Actually, in this instance—Michigan is a blueprint for what WILL be happening to California

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.

[ElayneJ]

Is that true? (!!)

[italianquaker]

Dollars to donuts higher

[grellis]

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

[cookcounty]

Any repoerts on how Western Michigan (the heavily GOP region) is faring in all this?

[bareford101]

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/

[bareford101]

this is what we all will be hearing from the obamanation unless we can get him out of office.

[Brilliant]

Not surprising. The libs always aim too high on spending, and they ignore the harmful effects of their policies which reduce growth and revenue.

[Sioux-san]

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?

[Lancey Howard]

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.

[RJL]

In Michigan, Deficits Defy Years of Cutting

They killed and ate the goose that laid the golden eggs, now they're wondering why there aren't any more golden eggs.

[SunkenCiv]

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]

[ODC-GIRL]

There are exceptions to every rule, even in Michigan!

[SDShack]

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.

[CharacterCounts]

How much lower is the FY 10 Michigan budget than the FY 02 Michigan budget?

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)

[Jim Noble]

Michigan Budget 2003 - 2009

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.

[OCCASparky]

I take issue (respectfully) with that. California has a similar issue to Michigan vis-a-vis industry, insofar as much of California's industry, like Michigan's is chock-full of unionized labor.

Unions such as the SEIU, UFCW, et al, have choked California economic policies to the point where the ONLY reason California's population isn't also decreasing is the incredible influx of immigrants (both legal and illegal), while the taxbase (yours truly among them) leave by the millions.

[machman]

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....

[jammer]

When a liberal uses the term, "cut", one has to be careful and not believe it until one has seen the actual numbers.

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.