Tag: Proos

LTE follows:

It's time to break up the Fred Upton nexus

Editor,

Twenty-four hours ago we were reading startling and scary news about Michigan's state budget deficit.  $785 million, the experts told us, with a fresh $5 million added to the pool of red ink every morning and half of the fiscal year behind us.  

Those were the days.

By mid-afternoon the word had leaked in Lansing that things were much (much... MUCH) worse than anticipated.  $1.3 billion in red ink.  That's a rough six hours.

Listen, we have a good time here on RightMichigan.  Our tongue is often firmly planted in cheek, we razz, we encourage, we joke, we enjoy a good bit of sarcasm and cynicism.  This is not one of those times.  

$1.3 billion in red ink with a balanced budget requirement in the Constitution and only half the fiscal year remaining to make the cuts.  

Dear Lansing- the fun and games are over.

We could look back over the last few years and analyze how we got here and there's a time and a place for that, too, but this is not it.  It is time to look forward.

The Granholm-Cherry administration was expected early next week to make $200 million in budget cuts via an executive order while asking the legislature to plaster over the rest of the deficit with one-time cash via federal stimulus funds.  Not only would that move be insufficient in light of the drastically larger deficit, it would be just plain irresponsible.  Period.

The legislature should convene an emergency session TODAY to start making deep, drastic and yes, painful spending cuts.  If the Governor won't call an emergency session and the House won't play along then the Senate should be the adults in the Capitol City and do it themselves.

Lieutenant Governor John Cherry and Senator Hansen Clarke should cancel their mid-day open bar lobbyist meet-and-greet fundraiser, too.  We literally cannot afford one more day of inaction and status quo.

$1.3 billion in cuts from six months worth of a budget will not be easy and it is going to hurt like the dickens.  $1.3 billion in cuts from five months worth of a budget will hurt that much worse.  $1.3 billion from three months worth of a budget... you get the idea.

The time is now and urgency is required.  The House GOP, for their part, is ready to rock and roll.  Minority Leader Kevin Elsenheimer yesterday sent to budget negotiators a substantial list of proposed spending cuts while they continue to hunt and work for more.  

Representative Chuck Moss, the ranking Republican on the House Appropriations Committee said: "At the rate we're going, we may actually beat one of the auto companies into bankruptcy. We need drastic, immediate steps to put our state back in order. We tried the game of tax increases, look where that got us. It chased away business, foreclosed more homes, unemployment hit 12.6 percent. And we still didn't get the promised reforms. The day of reckoning is now. "

"Clearly the governor and Democrat's plan from 2007 has failed," said state Representative John Proos, R-St. Joseph. "We were promised that the largest tax increase in state history would solve the problem, but now we're left with a larger deficit and a much larger unemployment rate. History is repeating itself because nothing changed -- no reforms, no change in spending habits, and no change in budget deficits. We learned in 2007 that tax increases are not the answer. With the state of the economy and the national economy, we simply must spend less money."

Unfortunately, the House Minority seem to be about the only ones in Lansing taking this seriously, and that isn't just a knock on the Democratic Majority.  We could stand to see a little more leadership out of the Senate GOP, too.

Dear House Democrats- we tried your tax hike idea in 2007 and it has done nothing but made the problem (exponentially) worse.  Spending cuts will hurt.  Bad.  A real pain in the neck.  The alternative will hurt a lot more.  

Dear Senate Republicans- start acting like Republicans.  If the Left won't do the job (and every indication is that they won't) then it is up to you to save this state on your own even if that makes you "the bad guy."  Consider it the cost of character.

$1.3 billion in red ink.  And the legislature isn't in an emergency 24 hour marathon session to cut spending because...?

The sunshine and rainbows have gone away, ladies and gentlemen.  Time to get to work.

"The Michigan automotive supply sector is struggling because of the failed business policies of the state, and as a result, thousands of Michigan jobs are in danger," said state Republican Representative Kim Meltzer.  "More Michigan workers are employed in the supply industry than direct auto manufacturing, but many suppliers are on the verge of bankruptcy. Times are tough, and if we are to break out of this current economic slump, we have to eliminate such impediments to job expansion."

Meltzer, along with Democrat Rep. Mark Meadows and Republicans John Proos and Sen. Jason Allen, today introduced a bipartisan six-bill package to create accountability for the auto industry by:

• Eliminating permanent recording on tooling: Under the current acts, tool and die companies are required to permanently record on all of the tooling it designs.  

• Reducing the 90-day waiting period to 30 days: Current law requires companies to wait 90 days to issue a lien if payment has not been received.  A full three months is a long time for a tool and mold builder to bear the financing cost for a design, fabrication and manufacture of the tooling while the customer is allowed to continue using the tooling.

• Grant immediate possession and enforcement under general motion practice: The acts grant the lien holder the right to possession of tooling and to enforce their right to possession by any "available judicial procedure."

• Allow for the assessment of interest, damages and attorney fees: Tool and die companies are forced to spend thousands of dollars on attorney fees, court costs, etc. to enforce the lien under the acts.

• Includes language regarding the waiver of a mold builder's rights under the lien act and the application of the law of another state: Prevents any contract language that attempts to waive a mold builder's right under the lien act.

"This is a multi-billion dollar problem across the state," Meltzer said. "But it's also a fairness issue - businesses aren't living up to their contractual obligations and these poor business practices will force Michigan suppliers to close their doors."

On the other side of the Capitol, a big local event was added today to next week's schedule.

Read on...