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    Dems angling for second government shutdown in a month!


    By Nick, Section News
    Posted on Thu Oct 18, 2007 at 07:04:24 AM EST

    And you thought the worst was over, didn't you.  You can admit it.  You thought that Jennifer Granholm and Andy Dillon and their Democrat friends (plus Chris and Valde) got their biggest-in-the-history-of-the-world tax hike and that they were content and would be more than willing to make the $400 million worth of budget "cuts" they promised in the early morning hours of October first.

    Well, silly you.  It's not over.  The Dems aren't content and they refuse to make cuts.  So what does that mean?  Come midnight October 31, 2007 as we turn the calendar from Halloween to All Saint's Day we may very well be getting one last very late "trick," a second government shutdown.  

    Rich Studley of the Michigan Chamber tells the Detroit News:

    "Business owners and everyday people are starting to understand ... (that) over three-fourths of the budget solution was a $1.4-billion tax on consumers and job providers while the cuts were just something written on a piece of paper."

    Phil Power, president of the nonprofit Center for Michigan, said there's growing concern that lawmakers are headed toward another crisis.

    "You betcha I'm worried," said ex-newspaperman Power, whose Ann Arbor-based think tank seeks "comprehensive, long-range and, in some cases, radical policy solutions to transform Michigan's business, economic, political and cultural climate."

    "In order to get a sensible resolution," he said, "things need to be very different in the Legislature than they were during the first round."

    ...(Said) Matt Marsden, spokesman for Senate Majority Leader Bishop: "Democrats wanted revenue and they delivered massive tax hikes. Now we need to implement real cuts. There is an urgency for the Democrats to make good on cuts we all agreed to, or we'll be back soon to that miserable place we were a few weekends ago" -- on the brink of a state shutdown, he said.

    Look, I'm not making threats... what can I do anyways, right?  I'm just one guy out here in Grand Rapids.  But I swear to high heaven, if I'm sitting at my computer glued to MGTV on Halloween night, watching paint peel from the walls of the House Chamber or listening to Cush or Lamar or Andy Meisner telling Republicans how mean they are...

    Oh, but get this, parts of the $400 million they've already agreed to.  They're all willing to scale back INCREASES in spending on certain departments.  Gee, isn't that swell of them?  Now how about we go ahead and make some actual structural changes that result in long-term structural spending cuts.  Just a thought.

    Read on...

    Meanwhile, as the House Democrats push the state to the brink of a second government shutdown there are a few folks in the Senate, Republicans AND Democrats, who have seen the err in their ways (at least in part) and are angling for a repeal of the $613 million service tax hike they just passed less than three weeks ago.

    The FREEP reports:

    Among the sponsors of the repeal -- introduced by Nancy Cassis, R-Novi, who chairs the finance committee -- are two senators who voted for the tax in the early-morning hours of Oct. 1, Wayne Kuipers, R-Holland, and Jim Barcia, D-Bay City. At that time, the tax was approved on a 19-19 vote with Lt. Gov. John Cherry breaking the tie...

    Business groups have reacted ferociously to the tax, which will mostly be borne by businesses conducting transactions with other businesses.

    Some firms who purchase large amounts of some services that will be taxed, including accounting and janitorial, have said their costs will skyrocket.

    A coalition was announced Wednesday of 40 business groups who vowed to pursue a repeal of the measure, either in the Legislature or by petition drive.

    Rich Studley, vice president of the Michigan Chamber of Commerce, said Wednesday the volume and vehemence of opposition to the service tax and the way it was enacted was greater than the reaction to any issue he can recall since the 1980s.

    But don't get too excited.  It's not that guys like Barcia no longer want to raise our taxes, they just want to raise them in a different way, having seen the uproar and the clamor that they've caused within the business (read: job making) community.  Although something tells me that with the speed and ferocity of the recall efforts that are being launched on an almost daily basis there might be one or two folks out there who'd switch their votes and support a much more reforms-based solution.

    Seems fitting, then, that Jack McHugh of the Mackinac Center went and got himself published in the Oakland Press discussing various cuts and reforms that could get Michigan's fiscal house in order for more than a month at a time without passing along the cost to working moms and dads or killing jobs.

    There is a common theme that runs through opposition to every one of these common-sense reforms: "That's not the way we've done it in the past."

    That's not good enough anymore: Michigan has already passed the tipping point of going from relative decline in population and income to absolute decline. Without major reforms, there's nothing to prevent the entire state from going the way of Detroit, with a declining population and an economy that is unable to support a government establishment that believes its residents exist to serve it -- not the other way around.

    None of these items would be "devastating" to the state, to "vulnerable populations" or even to any particular interest group. Most people would not even notice that these changes had taken place. The alternative, recently authorized by the governor and the state Legislature, was to raise the income tax to 4.35 percent and spread the 6 percent sales tax to some services. This will only drive more people out of Michigan and hasten the impoverishment of a formerly rich state economy that in this decade has become a poor one.

    Check out the OP for the Center's latest list.  And pick a few from his list and send them along to your local State Rep if you get a second today.  With the Democrats angling for a second government shutdown in a month they could use all the help they can get.

    < 3 MI Pro-Life, Republican Congressmen Unfairly Targeted by Leftist Catholic Coalition This Week | Michigan Unemployment rate up to nation-worst 7.5% >
    Display: Sort:
    Why in hell... (none / 0) (#1)
    by Calhoun Kid on Thu Oct 18, 2007 at 08:14:46 AM EST
    Why in hell did the Senate go along with tax increases when spending cuts weren't included in the package?  Isn't it obvious that this is a very stupid way to get the Democrats to agree to cuts?  If I were a business owner, I wouldn't give my product to a customer and then negotiate over the price a month later.

    More Tax Hikes? (none / 0) (#2)
    by DMOnline on Thu Oct 18, 2007 at 08:18:32 AM EST
    If the Dems are angling for another government shutdown, exactly what is it they hope to accomplish?  Are they proposing still more tax hikes to pay for the rest of the reckless spending not covered by their already-passes massive tax hikes?

    I realize most Democrats are politically tone deaf these days.  But the majority of residents are already mad as hell about the tax hikes passed earlier this month.  If the Dems aren't willing to make the handful of spending cuts/reforms they promised earlier, exactly what are they angling for with another government shutdown?

    DMOnline


    I think it's more likely (none / 0) (#3)
    by Nick on Thu Oct 18, 2007 at 08:31:13 AM EST
    that they want to bring it to the brink of a shutdown, maybe go over it, then pass the cuts so that they can then run to the cameras and say "we didn't want to cut X great program and Y great service but those mean Republicans made us."

    They're hoping to deflect public furor over the Democrat tax hikes and redirect it at mean old Republicans who want to kill senior citizens and stick 800 kids in each classroom (according to the latest MDP talking points).

    If you check (none / 0) (#4)
    by Ed Burley on Thu Oct 18, 2007 at 10:21:27 AM EST
    you'll find that I have maintained all along that the $400M in cuts won't materialize. Get ready for more taxes.

    Anybody need any vaseline?

    Geniuses (none / 0) (#5)
    by Victor Laszlo on Thu Oct 18, 2007 at 08:34:29 PM EST
    First of all, Senator Mike Bishop is an idiot the way he has handled these budget negotiations.  Secondly, all those geniuses have to do in Lansing is make an across the board cut over all departments.

    Idiots (none / 0) (#6)
    by geek49203 on Thu Oct 18, 2007 at 09:00:48 PM EST
    "Secondly, all those geniuses have to do in Lansing is make an across the board cut over all departments."

    Uh, no.

    First, about $12 billion of the State's budget are pass-through funds from the Fed -- ie, Medicaid, etc.

    Second, of the remaining (about $29 billion), much is "locked up." Some is due to ballot initiatives -- ie, funds mandated to take care of State parks, DNR, etc.  Some is destined to debt payments, etc.  This is why you see funds for new college buildings and local park improvements while there is a massive budget deficit.

    My understanding is that about 1/4 of the State's $41 billion is available to budget cuts.  Therefore, the remaining cuts will be about 5% of those funds, and many of those budgets have been gutted since 2002 when the GOP's budget bulge started deflating.  

    Question for Nick. (none / 0) (#8)
    by KG One on Thu Oct 18, 2007 at 10:47:22 PM EST
    With the prospect of our taxes going up yet again, when will we see Ward, Garcia, et al in the Tax Hike Wall of Shame?

    Mackinac Center recycling (none / 0) (#9)
    by NoviDemocrat on Fri Oct 19, 2007 at 12:59:11 AM EST
    McHugh's list is mostly a recycling of Senate Bill 511. This is the bill that proposed to:
    • Close 3 prisons
    • Close the Maxey Training School
    • No funding increase for universities
    • No funding increase for public schools
    • Cut State Police secondary road patrols
    • Close Secretary of State offices

    Other cuts that weren't included in 511 include:
    • Eliminating 20j payments to certain public school districts (like Novi Schools)
    • Cut revenue sharing to local governments

    You can count on one finger the number of state reps and senators who will go on record supporting a list of cuts. SB 511 passed the Senate because Senators knew it would never pass the House. When House Republicans were given a chance to vote on a bill that included the SB 511 cuts, not one of them voted for it. Marty Knollenberg called such cuts "Draconian". So who thinks that Republicans are going to embrace these cuts? I guarantee that Lansing Republicans won't support such a list of cuts.

    • You forgot by Ed Burley, 10/19/2007 10:56:07 AM EST (none / 0)
    what?? (none / 0) (#15)
    by nickburns480 on Fri Oct 19, 2007 at 02:42:22 PM EST
    Think about the children!  We will kill the citizens of michigan if we pass cuts.  I can hear it now.  If not, blame Engler.  

    I really care...NOT (none / 0) (#16)
    by Victor Laszlo on Fri Oct 19, 2007 at 04:53:09 PM EST
    I've been kicked off Redstate twice for calling Tom Delay a RINO and a traitor to conservative principles.  I can assure you, I don't lose sleep for calling out incompetent or unprincipled Republicans.  

    In fact, if there is one thing that irks me more than neo-communist liberals is incompetent or unprincipled Republicans.  I expect Democrats to be both incompetent and unprincipled because it is inherent to their nature; it is only natural that they be so incompetent and unprincipled.  However, Republicans who are incompetent or unprincipled are about as natural and tolerable as athlete's foot disease.  

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