If you’re not part of the solution, you’re part of the problem.
That slogan dates back to the 1960s, but for Michigan, it was never truer than it is now. Our long-suffering state is staring at the very real possibility of yet another dreary round of inaction from a paralyzed state government. This year, we are facing yet another looming budget deficit, now estimated to be at least $1.7 billion.
What’s maddening is that it is very clear what can be done about it. The stage is set for another “grand bargain,” as Gov. Jennifer Granholm puts it. That would mean enacting a whole bunch of reforms in the structure, workings and cost of government at all levels, including downsizing public employee wages and fringes.
That would also mean simultaneously reforming the tax system, possibly by reducing the rate of the sales tax from 6 percent to 5.5 by extending it to services, exempting medical, educational and business-to-business services. Doing so would also allow the state to eliminate the 20 percent surcharge in the Michigan Business Tax.
That’s the obvious, common-sense solution — and it is something that is anathema to many in the dysfunctional political culture we have today Most Lansing insiders I talk with guess there’s only a 10-20 percent chance our political leaders will get anything far-reaching done this year. Instead, they say, they’ll pass some form of “continuation budget,” kick the can down the road and leave the people who take office next year to clean up the mess.
There are two words for this, and they go together: Appalling is one. Stalemate is the other.
Now, to be fair, two of our state’s most powerful leaders have made valuable suggestions to end the impasse: Speaker of the House Andy Dillon (D-Redford) has proposed putting the health care programs of all public employees (including teachers) into one giant pool. Dillon estimated that this would save $900 million; others think it would be less. But it’s clear his suggestion is one of the few big enough to be relevant to Michigan’s financial problems.
That has, naturally, earned him the opposition, even hatred, of the public employee unions, especially the Michigan Education Association. But at least he’s shown the guts to go out on a limb.
So, too, finally, has the governor. After years of being unwilling to accept the necessity of cutting the costs of government, she unveiled last month some very sensible reform proposals, including giving state workers strong incentives to retire, cutting fringes and pooling health care. She estimates annual savings at $450 million.
That’s a very significant step. And Granholm deserves lots of credit for taking on traditional Democrat-leaning interest groups and leading like a governor should.
But what the third member of our top leadership, Senate Majority Leader Mike Bishop (R-Rochester)?
Last year, he rammed through an all-cuts budget plan that sacrificed programs and still has people screaming. This year, Senate Republicans produced a reform plan that encouraged local governments to share services, ending some Medicaid coverage and a 5 percent pay cut for public employees. He’s also hinted that the $1.8 billion deficit can be cured by spending cuts alone.
Democrats disagree. Has Bishop shown any hint that he might compromise? Nah. Last year, Bishop refused to budge from an all cuts budget. Most Republicans figure he won that round. By and large, they see no reason to change now, especially with every legislative and executive job up for election in November.
Best as I can figure it, the Republican political playbook goes this way: Oppose any compromise whatsoever with Granholm/Dillon and the Democrats. Then savage them for failing to get the job done.
Beyond the obvious hypocrisy involved, failure to act to solve Michigan’s financial problems merely makes those problems that much worse for the millions of citizens who have every right to ask their leaders to stand up and lead for the common good.
But too many people can’t see past the political gamesmanship, especially when Bishop is running hard for the GOP nomination for Attorney General, in a contest where he is now an underdog to former congressman Bill Schuette.
Too often, in today’s leaders’ heads, prospect of higher office trumps obligation to the common good. Indeed, last week, Michigan pundit-at-large Craig Ruff quoted British author Lytton Strachey, who long ago sarcastically asked “What has posterity ever done for me?”
Granholm is term-limited out of office at the end of the year; but it looks like she’s chosen to try to establish a legacy of responsible leadership. Dillon is likely going to run for governor; regardless of what happens, he can lay claim to having made a far-reaching, responsible proposal to attack the state’s financial problems.
And Senator Bishop? Only time will tell. But he might be well advised to remember that if you’re not part of the solution, you’re a big part of the problem.
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Editor’s Note: Former newspaper publisher and University of Michigan Regent Phil Power is a longtime observer of Michigan politics and economics and a former chairman of the Michigan chapter of the Nature Conservancy. He is also the founder and president of The Center for Michigan, a bipartisan centrist think-and-do tank which is sponsoring Michigan’s Defining Moment, a public engagement outreach campaign for citizens. The opinions expressed here are Power’s own and do not represent the official views of The Center. He welcomes your comments at ppower@thecenterformichigan.net.
8 Comments
It is far too late for the Governor to establish a legacy of responsible leadership. With her track record, it is no wonder people are not rallying to compromise with her. She has been deceitful, not followed the will of the legislature, and played ploitics for too long for anyone to trust the integrity of her proposals now.
Granholm talks about the New Michigan, but her budget looks exactly like that of the Old Michigan. More spending and higher taxes, and protection for state workers and teachers unions. How do you compromise with someone bought and paid for ? You don’t.
Just say no Mike Bishop, Just say no !
I can’t say I am surprised to read the comments on Mr Powers essay. The essay correctly points out the governor is moving to a position of compromise – giving something to get something. Giving up some tax revenue that would aid the average person (sales tax reduction) assist students and put a service tax on a profession that has previously an untouchable.
But even before the metaphorical ink could dry the detractors came out.
Not followed the will of the legislators? She signs their legislation? The budget looks very different than it has before.
All, Mr Powers is correct – we need to work together to pass a budget that makes sense – sense to all not just those who only want a tax reduction and to hell with the consequences. We need a fiscal policy that recognizes reality and pays for the things the people want or forces the voters (who are the big problem) to eat their own cooking.
So if your “solution” is to just say no, apparently with scant knowledge of the budget, then as Mr Power said, you are part of the problem as you are not suggesting a solution but a face-off. The best way to reduce the taxes you pay in Michigan is to leave, As President Reagan once said, “vote with your feet,” we won’t miss you. I hear the taxes in Mississippi are very low as are the standards for education, public safety and medical care as well as many other services.
Perhaps Mr Bishop would go with you?
Phil:
Your bias is showing. You state about Senate Majority Leader Bishop “Last year, he rammed through an all-cuts budget plan that sacrificed programs and still has people screaming.” Last time I looked, there were three parties to any legislative agreement including the Governor, a majority of the House members and a majority of the Senate. You can hardly lay last year’s budget on Mike Bishop alone, and the Majority Leader and many others honestly believe we don’t have a budget revenue problem, but an excess spending problem.
The fact is, the Senate Republican Caucus called for largely an all cuts budget beginning in June of 2009 and outside of using the majority of the federal stimulus money, that’s what the Legislature concurred in doing. This year neither party appears poised to support any substantial tax increases, so let’s quit whinning and begin advocating for the reforms that we all know need to be adopted to balance this year’s budget.
Michigan has enjoyed a bounty of well funded government programs, largely on the engine of our automobile industry. The dramatic collapse of that industry will not soon be restored, if at all, in the near future and we need to reconfigure what government can deliver in an environment of plumeting incomes and high unemployment.
Simply out, we can no longer afford the government we have and it must be trimmed back.
Thank-you Mike Bishop for your stance in the last budget cycle, without your strong position we would have never seen any real reform. That said now is the time for cooperation and compromise and a oppurtunity to show the residents true leadership putting aside political partisanship, bickering and actually doing what is in the best interset of the citizens that elected you to your position.
Thank you for the article that hits the nail on the head. Anyone can stand up and just say “no” to everything proposed and not offer any type of solution to Michigan’s problems. And it didn’t just start in the last couple of years, the political solution of not working together has put our state where it is today. The elected officals are supposed to work for the betterment of the people and that hasn’t happened in many years, starting back in the 90’s.
“of yet another dreary round of inaction from a paralyzed state government. ”
That says it all.
Im kinda tired of hearing people complain about how our election and campaign system causes our govnernment much distress and delay in getting important Change done.
Everyone knows that unless you Change the Status quo which makes existing and aspiring politicians happy, you will never get the performance you want.
Especially if new and current Republicans take over like Biship or Hoekstra.
They have a National Party POlicy of exactly the kind of All or nothing for themselves political strategy that has nothing to do with fixing government or helping the people who need help. Always Agenda driven to help those who donate the most to them, and offer the biggest post politics prizes to them as bribes.
Fix the campaign cycle and process and you’ll fix most of your legislative debacles.
1) Make all state level Elected positions 4 yrs.
2) Limit all campaigning to starting 6 months before the next election.
3) Limit all candidates to identical state funding from a progressive tax, over that 4 yr period.
4) Require any claims by politicians or Claims For or Against any politicians by any groups to be proven with basis.
5) Limit all outside groups/corporations/non-profits to only able to put out a flyer with same requirements to prove claims and accusations.
6) Require to follow rules or penalty is large cash fine, along with permanent banning from political campaigns within the state. Including Fines for Top officers of offending organization/company.
Accountability and responsibility must be maintained.
Allowing campaigns to continue to be a Free for all for whomever has the most money is insane.
The problem is always those groups or companys or whomever with the most money often has the most access, the most influence and helps the least people, and most often harms a large portion.
This has to end.
The people have the right to and responsibility to speak for their own interests individually and not be forced into playing a game of who can come up with the most powerful lobby groups just to get needed govt. assistance.
This is a brilliant look at Michigan politics. You should have concluded; “And that’s why we need to rewrite Michigan’s constitution.”