Another week, another stalemate. Neither House nor Senate seems willing to take up three fixes that could take care of more than $1 billion of the state budget deficit. All but the most extreme on the left and the right acknowledge a deal requires some mix of cuts, reforms, and taxes. Neither chamber seems able to break the grip of partisan dogma and interest groups to take up these approaches:

1. $275 million in state compensation efficiencies. Bishop's willing to save $75 million by canceling planned pay raises this year for state employees. Dillon's package includes no such wage freeze. Neither leader deals with state worker benefits costs, which run considerably higher than the national average. Reducing state worker benefits ratios to match those for private sector workers could save an additional $200 million or more per year. Both the Small Business Association of Michigan and the Center for Michigan reached that same conclusion in separate studies this year. Detroit News columnist Daniel Howes rightly asks: "Tell us how you explain to recently retired auto workers fearing for their pension and health benefits that they have to pay higher taxes so their pals in the public sector won't be asked to do the same. Answer: You can't, and sooner or later they'll wake up to the rank hypocrisy and fight back."

2. $500 million in reasonable prison reforms. One-third of our huge state prison population is behind bars for drug convictions or non-violent crimes. Thirty-one percent have been held past their earliest possible release date and three-quarters have been denied parole at least once. Michigan's incarceration rate is 40 percent higher than neighboring states. Adopting reforms to bring our prison rate in line with other states would save $500 million per year. Finding efficiencies – including prison guard pay comparable with other states and possible privatization of some prison operations – could save hundreds of millions more. Legions of statewide leaders – business conservatives, social net liberals, academics, the governor's financial advisors – have all pleaded for corrections reforms. The Bishop and Dillon packages each include only $50 million in hazy corrections savings.

3. $300 million (or more) in beverage taxes. States like Texas and California raise more than $100 million a year by taxing unhealthy soft drinks. Michigan's tax on beer was last adjusted 41 years ago when it was cut. That tax has been at just under two cents per beer ever since. Two cents in 1966 is the equivalent of a little more than 12 cents a bottle today. If legislators simply made that adjustment for inflation they’d raise $225 million. Why won’t they? Two reasons: the powerful beer and wine lobby in Lansing and a perceived fear of alienating blue collar beer drinkers. So, instead, legislators are toying with an income tax increase that would cost a $50,000-a-year blue collar worker another $275 – and that buys a lot of beer.