The most depressing news item I’ve seen in awhile came in a recent story in the New York Times on the announced retirement of the longest-serving current member of the U.S. Supreme Court: “Justice John Paul Stevens … may be the last justice from a time when ability and independence rather than perceived ideology, were viewed as the crucial qualifications for a seat on the court.”
This goes right to the heart of so much that is ailing in our present political culture. Sadly, whether in Washington or in Michigan, ideological litmus tests trump ability and independence.
Here’s a current example.
Michigan has experienced a chronic, built-in budget imbalance of around $1 billion for nearly 10 years — regardless of how well the economy is doing. Every year, people in Lansing rush around, crying “the sky is falling” … and it is.
And every year, lawmakers and the governor conspire in adopting a “balanced budget,” as demanded by the Constitution, with “balancing” achieved either by using various accounting gimmicks and one-time fixes or by resorting to a draconian “cuts only” budget, which is what happened last year.
This year, we again face a deficit in the state’s General Fund — this time, one estimated at $1.8 billion. And this year, the political parties are arguing fiercely, but pointlessly, with each other about how to balance the budget. The Senate Republicans call for big cuts, including several hundred dollars per pupil in our schools.
Democrats urge “revenue neutral tax reform,” and propose to reduce the state sales tax from 6 percent to 5.5 percent. They’d do that by extending the tax to most services, not including education, health care, and business-to business transactions.
State Rep. Tim Melton (D-Auburn Hills), chair of the school finance committee and one of the tougher-minded and better-informed House members, jumped into the firefight last month at an Action Group meeting on education sponsored by The Center for Michigan, the non-profit institution I chair. Calling the financial pressure on the schools “unsustainable,” Melton noted projected health care cost increases this year of 15.6 percent and pension benefits increasing from 17 to 19.4 percent — at a time when state tax revenues have declined significantly.
Melton called it “ridiculous” for Senate Republicans to have signed no-tax pledges at a time when dozens of Michigan school districts are on the edge of the “Kalkaska option,” i.e. shutting their doors before the end of the school year.
Clearly, neither political party is willing to agree to the obvious sensible compromise – significant cuts in government costs at all levels coupled with tax reform. So Melton called for a public vote on whether the state should choose between deep and damaging cuts to schools, or sales tax changes that would produce more money.
And that wasn’t just rhetoric. Last week, Melton said he’d spoken to the Republican senate leadership about what kinds of government cost reforms – reductions in health care and pension costs for public employees, for example – they’d want in exchange for a vote on sales tax reform. That seemed to me an excellent start.
But so far, no takers.
“I haven’t heard a squeak from (Senate Majority Leader Mike) Bishop” (R-Rochester), Melton told the MIRS news service, sounding (at best) a little disgruntled.
He says June 3 is the last deadline for the legislature to pass a proposal that would appear on the August primary ballot.
Bishop finally responded by saying house Democrats had not suggested specific reforms. “We have some amorphous reforms, cuts and their tax increases. … They have to step up. Their credibility of being able to get something done over there is questionable.”
Bishop also indicated that he considered Melton’s proposal a tax increase vote, which gave him a chance to began waving the Republican anti-tax flag.
In other words, for him it’s tit for tat; business as usual.
Meanwhile, Business Leaders for Michigan CEO Doug Rothwell says his group is losing hope that any comprehensive budget deal will pass the legislature this year.
His group took a poll last month which Rothwell said indicated that 69 percent of voters asked feel a combination of tax AND spending reforms are necessary to balance the budget.
Once more, the people are far, far ahead of their elected representatives. The tragedy is that far too many of our so-called leaders prefer to cling to ideology and play partisan games in a time when their state desperately needs creative solutions.
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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.
5 Comments
Mr Power,
I’ve been around long enough (67 years) to be able to look at the current state budget controversy with some perspective. In short, I’ve seen it before, several times over. One party ALWAYS sees a tax increase as the solution to this recurring problem. It doesn’t matter, for example, that teachers unions have priced their comodity, way beyond any reality. It simply doesn’t take a genius to teach school. Any dolt can teach any subject given narrow training in that subject area. In fact we have many dolts teaching classes for which they get paid as if they were rocket scientists. They are not. They work six hours a day, nine months a year, and have several holiday vacations along the way. Is there, perhaps, something wrong with that picture?
The UAW had to face the fact that unreasonable pay demands for assembling automobises, was counter productive and they found themselves priced out of the market by foriegn companies, without the UAW handicap.
Likewise, raising taxes cannot ALWAYS be the answer. In fact, those taxes and overpaid employees are themselves the problem.
Michigan needs to get real and face that repeating what has ALWAYS been done and has always failed, demands a reversal of direction. This will necessitate replacing the current political landscape with new people both in and out of government
In 2007 our representatives passed a tax increase that was said to fix the built in structural budget deficit, but in 2008 we were still in deficit. Their rhetoric was disingenuous or flat out wrong. Once the revenue was recieved our representatives expanded programs, spent the tax increase and little if any expence reforms were realized. Why should the taxpayers believe in anything a politician says? Our representatives should be leading by example but what cuts in their lifetime healthcare or over generous salaries, the 4th highest in the nation are they willing to give up?? Zip, so why should taxpayers bail them out for the spending decisions they have or have NOT made??
We have been pouring money down the education hole for decades now. As far as I can determine, schools are performing at approx 30-50% of the level they began with 50 years ago. So more money isn’t the answer by itsself. We keep saying that our tax system isn’t that bad when compared to our neighboring states. However, our neighbors don’e seem to be taxing anything that well either. So, why emulate them? Also, how about getting rid of agencies that have proven themselves redundant and detrimental to our economy. Beginning with MDNREQ, MEDC, DELEG, Transportation, MIOSHA, to name a few.
Let’s not overlook a couple of bright spots, though.
–I think the people were looking for ability and independence (or pragmatism) when we elected Barack Obama, and I think we’re starting to see good results.
–I look forward to seeing Joe Schwarz’ plan for taxes and other State government reforms. My guess is that he will garner a lot of support as an independent.
Sorry, but I’m not seeing where the problem here is.
Next year’s budget was submitted by Gov. Granholm.
It has been passed in the Michigan Senate.
It’s now stalled in the Michigan House.
And why is that?
Instead of signing off on what the Gov & Sen have agreed to, this is what they are after:
“Democrats urge “revenue neutral tax reform,” and propose to reduce the state sales tax from 6 percent to 5.5 percent. They’d do that by extending the tax to most services, not including education, health care, and business-to business transactions.”
I noticed that you placed revenue neutral in quotes.
Interesting way to report it, because according to reports from Lansing, that “revenue neutral tax reform” will actually result in revenue surpluses for about the next 2-3 years.
And we all know what happens when politicians get their hands on more money?
That’s right, they spend it.
Let’s not put Michigan Taxpayers on a treadmill here.
Pressure should be placed where it needs to be; on the recalcitrant house democrats who are holding up the Michigan FY 10-11 Budget!