By John Bebow - October 4, 2007
Eight months ago, when Gov. Jennifer Granholm outlined her plan to increase state taxes, this newsletter cited the governor's own bipartisan panel of expert state government advisors and bluntly called for reforms first and taxes second.
Clear benchmarking of local government costs and services. New funding strategies and other accountability measures to reduce duplication of services and increase cooperation between local government units. Reform of costly binding arbitration for public employees. Intense examination of public health care and pension benefits. (Note: a quarter-billion in state employee raises and benefits cost increases were untouched in last weekend's budget deal) Reigning in the runaway costs of Michigan's lock-em-up-and-throw-away-the-key prison system. Those are the kinds of reforms the governor's Emergency Financial Advisory Panel called for those many months ago.
The governor's seasoned financial panel supported increased taxes. But reforms were a big part of the equation. Those reforms haven't happened.
New tax revenue alone won't right the ship and get Michigan focused on a well-defined strategy to compete in the 21st Century global economy.
The math is simple...
Even with the new taxes, the state is on pace to spend five percent more money every year while taking in only three percent more every year, according to the latest Citizens Research Council calculations due out on October 5.
That math quickly puts the state billions of dollars back in the red, with no clear plan to spread ever-shrinking resources among ever-diversifying needs, ranging from caring for the poor, to bolstering the talent levels of the workforce, to protecting and marketing Michigan's natural resources.
The pain, noise, and work in the state capitol have only just begun.
5 Comments
Every time I see another plan to solve the states money problems it mostly involves more taxes or (fees). I don't here enough about producing more products that can help create jobs to provide a larger tax base. If anyone out there is interested email me and have a discussion on how to accomplish that.
Sincerly
Newly retired due to another plant closeing.
Dale Westrick
The reforms of teacher health care and retirement benefits were real and will provide long-term cost control. The number of state employees are at the lowest level since the mid '70s and most had not received a pay increase in years. Rolling back negotiated cost-of-living pay adjustments for increasingly productive workers is not reform.
Everytime a government employee equates tax and revenue it gives the State a "black eye". There isn't a knowledgable person in the State of Michigan who believes that inceasing taxes is the answer. It's just put on the shoulder of "Who's next" in the governers seat. A real leader will emerge sometime with innovative ideas and bring the people together, instead of pushing through reform by governing by social agenda.
Cutting the medical benefits of retired and ousted legislators, although not a budget-gap closer, would send the message that they’re in tune with most of the people they are supposed to be representing.
One of the biggest problems with the system, in this blogger/smart growth advocate's view, is that many Michigan township's form of small government duplicate many services and waste taxpayer dollars. Township's resistance to thinking regionally and acting cooperatively, has hampered the states ability to pool resources and address shared issues. These issues include not only land use and environment, but also local emergency services, public schools and other critical public services. There has been research supporting Michigan government reform for several years (see links below). Having been involved in and worked in Michigan at state, county, city and township levels, I know that something needs to change in the state to get Michigan on the right track again.
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