State Budget Talks Expected to Go Down to Wire; $440 Million in Cuts Eyed
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A key human service agency is calling for a halt to any more cuts in important state services as the Halloween shutdown of state government is already haunting Michigan.
Reports from Lansing are that legislators can't agree on how to proceed with cuts and/or new taxes to avoid cuts.
The same situation occurred at the end of September, causing a four hour shutdown of state services.
Meanwhile, a key Republican leader of the Michigan Senate will be in Midland on Monday, Nov. 5 to explain his party's position on the budget.
Sen. Mike Bishop, of Rochester Hills, majority leader, is slated to appear at the Mackinac Center for Public Policy, 120 W. Main St., from 4-5 p.m. Call 631-0900 by Oct. 31 for reservations.
Michigan's budget already is 39 percent lower than it was under former Gov. John Engler, according to the Michigan League for Human Services (MLHS).
As the 30-day state of Michigan continuation budget draws to end on October 31, the House and Senate are scheduled to meet in earnest this week on 18 state budget bills, State Sen. Buzz Thomas (D-Detroit) reported Sunday to MyBayCity.com.
"The Senate has added a Monday session to its calendar," said Sen. Thomas. "Both chambers still need to approve department budgets before Governor Jennifer M. Granholm can sign those department budget bills into law."
Republicans last week boycotted conference committee meetings on public school funding, stating they will not attend until a firm overall deal is in the works.
About $440 million in cuts are needed to balance the budget by the "witching hour" of midnight, Nov. 1.
Big cuts already in the works, and said to have bipartisan agreement, are closing of Jackson Prison and a 264 inmate prison camp at Manistique, saving about $39 million, and 2.5 percent cuts in other state programs, saving another $53 million.
Also on the chopping block are day care, public assistance, adult services and other human services.
Sen. Thomas noted that on October 1 the House and Senate passed bills that outlined necessary reforms, cuts and revenue enhancement designed to balance the budget and avert a state government shutdown. Both chambers also passed bills, which were signed by the governor, creating a 30-day continuation budget to keep state government operating.
A planned 2.5 percent increase in funding for public schools has been rolled back to 1 percent, saving $173 million, according to news reports.
Other cuts on tap include $26 million to community colleges and universities, $80 million to human services and $52 million in community health services.
The Michigan League for Human Services (MLHS) reported that Michigan's general fund budget -- the only piece that the Governor and Legislature have any real control over -- today is 39 percent smaller, adjusted for inflation, than it was in 2000, when John Engler was Governor. It's 41 percent smaller than in 1989; it's 47 percent smaller than in 1978. This despite a steady increase in Michigan?s population.
MLHS called for "No More Cuts to Education."
"A college education is the path to prosperity," agency leaders stated. "States with the highest percentage of their population with college degrees are the states with the highest per capita income. That includes Massachusetts, Connecticut, New Jersey and Maryland. States with the lowest percentage of their population with degrees have the lowest income. Those include West Virginia, Arkansas, Mississippi, Kentucky, Alabama and Louisiana. Michigan is 37th in the percentage of its population with a degree; temporarily it is 25th in per capita income, but that number will continue to fall unless we increase our share of college graduates."
"In recent years, state government has cut payments to local governments by more than $2 billion -- forcing the layoff of more than 1,600 police officers and increasing pressure on local property tax payers to fund this and other services that provide a high quality of life." MLHS stated. "Today, Michigan has fewer law enforcement officers than it did when terrorists struck our nation on 9-11-2001."
"Cutting state health care funding doesn't save the state money -- it just drives up health insurance premiums for employers, eliminates good jobs, reduces federal funding for Michigan, and worsens the health of Michigan residents," agency officials said, adding:
"Today about $730 of the health insurance premium paid by a family of four covers expenses run up at hospitals by uninsured persons. Every time the state cuts payments to hospitals and doctors, that figure increases. Because uninsured people tend to wait, understandably, until they are very sick to get health care, the cost of caring for them tends to be higher than if the state had provided coverage for them to begin with."
The agency estimated that for every $1 Michigan spends on Medicaid, the federal government sends an additional $1.39 to the state. So, for every $1 we cut from Medicaid, Michigan loses $1.39 in federal funding."###
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