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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Convene a Round-the-Clock Emergency Session TODAY!


    By Nick, Section News
    Posted on Thu Apr 30, 2009 at 07:49:48 AM EST
    Tags: Granholm, Cherry, 2010, budget, deficit, Senate, House, Proos, Moss, Elsenheimer, Bishop, Dillon, tax hike (all tags)

    $1.3 BILLION.

    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.

    < Thursday in the Sphere: April 30 | Bomb Threats & Backfires >


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    Display: Sort:
    Whoa.... (none / 0) (#1)
    by AdrienneKH on Thu Apr 30, 2009 at 09:51:25 AM EST
    I think I'm turning Republican...

    Silly Nick (none / 0) (#2)
    by Rougman on Thu Apr 30, 2009 at 11:17:43 AM EST
    It is so simple really.

    If you are $1.3 billion behind in revenues, simply pass another $1.3 billion in tax increases.  Viola, all the money you need!  

    An even better idea would be to pass $10 billion in tax increases because the state could use the extra money for investment in our future!  Just think what Jenny and Don could do with a $20 billion increase!  I swear, my leg just tingled.

    Gag.  What a couple of idiots.  With enough time these two will turn Michigan in to a nearly deserted peninsula, the only inhabitants left being themselves, the first gentleman and his two staffers.  

    Last one to leave MI (none / 0) (#3)
    by Shell on Thu Apr 30, 2009 at 11:40:31 AM EST
    This state is reminding me more and more of that National Geographic(?) special, "If All The Humans Were Gone."

    Of course, if all the humans were gone the democrats and Jenny would still find a way to levy taxes.

    Shell,
    The Conservatrarian

    budget shortfall (none / 0) (#4)
    by grannynanny on Thu Apr 30, 2009 at 12:53:20 PM EST
    I work for a company that supplies to MDOT and DNR. Every one of their employees come in at the end of the fiscal year and go on a buying spree to "use up our budget or else we lose it".  It makes me angry that they are buying for the sake of buying and not because it is needed.  Both of these departments have closets and warehouses full of crap, new and still in the box, sitting unused because it is no longer needed or obsolete.  All bought to "use up" their budget.  

    Also one of the dept heads at MDOT is very good friends with a sales rep and they are members in the same hunting camp.  Wanna bet that sales rep has great sales?  As a matter of fact, that sales rep wrote up specs for a bid on equipment so as it would eliminate other bidders thereby giving himself a very substantial contract with the state.

    I say each and every dept cull their budget by 25% and only essential items be purchased.  I see a lot of waste on a daily basis with just these two dept - can you imagine what goes on in other dept?

    Yikes. (none / 0) (#6)
    by thejmfc on Thu Apr 30, 2009 at 01:37:22 PM EST
    I had completely forgotten about our balanced-budget amendment.  I was just taking it for granted that we would run a deficit this year, and that would be that.

    What do we want to bet on as a "fix" this time?  Will the sales tax on services be dragged from the grave?  Will they double the already-crippling SBT surcharge?  Will the state stop bribing "cool" new industries to come here?  Will there be a sales tax increase, or an income tax increase?  

    I didn't mention cuts, because with the Dems in charge, I don't see 1.2 Billion in cuts happening.  

    Of course, if there is a silver lining to this ever-growing storm cloud, the Dems are either going to have to turn into fiscal conservatives pretty quick, or risk a real PR disaster.  The last thing people want to see is their taxes being jacked up during a major recession.  If that's what the Dems insist on doing, I think it'll come up once or twice in '10.

    "Remember that big tax hike?  It was that guy!"

    $1.3 billion deficit (none / 0) (#8)
    by GreatLakeStateRealist on Thu Apr 30, 2009 at 03:05:31 PM EST
    I think we need an emergency session on how to replace our tax system with a fair tax. 10% on all new non-grocery purchases? I think it's pretty clear that our tax system has failed us.

    • Rather, by thejmfc, 05/01/2009 03:30:50 AM EST (none / 0)
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