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    Senate balances budget (again): Time for House Dems to go along or approve an alternative


    By Nick, Section News
    Posted on Wed May 16, 2007 at 08:06:52 PM EST

    If the Democrats want a tax hike they're going to have to vote for one.

    The Governor and the House Majority continue to play political games but the Senate doesn't look to be interested in games.  Today at least the FY2007 budget has been balanced through cuts alone.  In theory.  In the Senate.  This afternoon, under Senate GOP leadership the senior chamber approved Senate Bills 436 and 437, cutting government spending by hundreds of millions of dollars, bringing spending in line with estimated revenues and forcing Lansing to live within it's means.  The bills now heads to the House.  

    The measures passed in the face of continuous pressure from the Granholm administration to raise taxes, claiming she'd made all the cuts she possibly could, and several weeks after Granholm's April temper tantrum induced threat to cut school spending by $125 per pupil.  

    While Jennifer Granholm continued her grandstanding before the Michigan State Medical Society, telling doctors and hospital administrators that without a tax hike the state would start forcing people to their deaths (her words were "people will die"), Bishop stood up and got something done.

    When you look back over the last four-plus months it's nothing short of miraculous that they've held the line this long... and this firmly.  The constant target of the administration, the Senate minority and the House of Representatives and a more and more popular target of the mainstream press for his insistence on forcing government to live within it's means before coming back, hands out and palms up to Michigan taxpayers, Bishop's stood his ground, insisted that the cuts were there and darn it all if he didn't find them.  Again.

    If someone will point me to the petition where I can nominate him for super-hero status I've got my pen ready.  For that matter I'd like to nominate the entire GOP caucus and the minority caucus in the House for standing firm, steely eyed and determined to protect working moms and dads if no one else will.

    But as good a day as Wednesday was for Bishop, it was a worse day for Andy Dillon and Jennifer Granholm.

    Let's examine a few facts.  Not opinions, not word games, not hyperbole and partisan rancor... facts.

    The school aid fund:

    Jennifer Granholm's plan:  Cut $122 per pupil forcing some schools to close.

    Senate GOP in legislation approved Wednesday, May 16:  $36 per pupil cut forcing no schools to close and saving public educators, the governor's biggest special interest backers, $86 per pupil!

    House Democrats:  Silence.  No votes, no legislation, no movement.

    Medicaid funding:

    Jennifer Granholm:  Cut 6% and tell the state that "people will die."

    Senate GOP: Cut 3% so no one will die.

    House Democrats: Silence.  No votes, no legislation, no movement.

    Tax hikes:

    Jennifer Granholm:  Has proposed in various forms as much as $3 billion in new taxes and Tuesday scuttled $337 million in bipartisan spending cuts because Republicans refused to acquiesce to a demand for a minimum $1.8 billion tax increase.  Conservative studies indicate her tax hike plan would cost the state 19,000 jobs at a minimum.

    Senate GOP: They've held the line for five months and balanced the state budget three different times now with spending cuts.  They continue to say NO to new taxes.

    House Democrats: Silence.  No votes, no legislation, no movement.

    Who exactly are the obstructionists?  And talk about reclaiming a little brand ID for the GOP.

    So what's next?  Well, the Senate's done their thing.  They've passed legislation that balances the budget.  The ball is now squarely in the Democrats court.  The House has two choices.  They can either vote on the Senate measures or actually introduce an alternative plan.  

    If Democrats continue to insist on "new revenues" (read: massive tax hikes) being a part of their solution then the time has come to introduce them and martial them through the House.  Put up or shut up, boys and girls.  Time's running out and continued cowardice in the face of fiscal crisis isn't doing anyone much good.

    What are you afraid of?

    < More Proof Michigan Needs a BIG Tax Hike | Thursday morning news round-up: They're talking about the budget (surprise, surprise) >
    Display: Sort:
    Nothing but gimmicks (1.00 / 1) (#1)
    by NoviDemocrat on Wed May 16, 2007 at 10:28:22 PM EST
    Bishop's "balanced" budget is nothing more than another set of gimmicks relying on one-time fixes and accounting games to "solve" the budget problems. How does he intended to pay for the costs that are pushed into the next budget year? How does he intend to pay for services that are being covered by one-time revenues (21st Century Fund)? How will the state avoid even deeper cuts for schools and health care in the next budget? Bishop has no plan and no clue. He's riding the Republican one-trick pony, cut taxes at all costs, which has failed Michigan for the past 6 years.

    and yet they balanced the budget... again (5.00 / 1) (#2)
    by Nick on Thu May 17, 2007 at 06:19:17 AM EST
    Do the Democrats have an alternative?

    Time for them to pass it in the House.  If you don't like this solution then pass something else.  The Dems control an entire chamber... time to use it.

    Props to Bishop and the Senate GOP for getting this done!

    A balanced budget without raising taxes.

    Not quite (1.00 / 1) (#7)
    by NoviDemocrat on Fri May 18, 2007 at 01:24:08 AM EST
    Nick claims "Today at least the FY2007 budget has been balanced through cuts alone."

    Really? Let's see if the facts match Nick's spin. Reviewing the latest round of "cuts" in the General Fund, Senator Bishop once again relied on accounting gimmicks to "balance" the budget. The list:

    $12.8 million in delayed payments to community colleges. That's not a reduction in spending, it's pushing the spending off to the next budget year.

    $69.4 million in delayed payments to colleges and universities. Ditto on the budget impact.

    $73 million reduction in federal revenue. How cutting federal revenue is a good thing is a mystery to me. But it sure isn't a "cut" and it doesn't help the state's bottom line.

    With all of this talk about "cuts", Bishop and company managed to add $40 million in additional spending into their proposal. This includes anothe $25.8 million added to the corrections budget. What? The state's not spending enough on prisons already? How is spending more money on prisons an example of a budget "balanced through cuts alone?"

    As for the cuts, I'm sure Republicans can be proud to stand behind cuts in programs to protect children from lead, prevent unwanted pregnancies and cancer prevention and control along with $102 million in cuts to basic health services to Michigan's poor and seniors. Glad to see that protecting tax cuts and spending more money on prisons is more important than taking care of those most in need.

    Nick also failed to point out all of the accounting gimmickery used by Senator Bishop as he raided the 21st Century Jobs Fund, state revenue sharing to local governments and funds intended for county government to cover the shortfalls in the budget. That means that while Senator Bishop and his yes-men here cover themselves with praise, it will be local and county officials forced to make cuts and raise local taxes to cover the shortfall from the reduction in revenue sharing. Typical of Republicans who are more than willing to push the problem off on someone else and take credit for "fixing" a problem they dumped into someone else's lap.

    In the School Aid Fund, Senator Bishop made sure to take a whack at the kids and actually cut funding for public schools. He relied on a raid of the 21st Century Fund to cover most of the remainder of the shortfall. Bishop again relied on one-time fixes instead of finding a way to fund school aid with a stable funding source. But even that amount didn't help special education funding, which got cut too. Again, the GOP shows its priorities, protect tax cuts versus funding schools and special ed.

    again, what tax cuts? (5.00 / 1) (#8)
    by Nick on Fri May 18, 2007 at 06:22:58 AM EST
    They aren't cutting taxes here.  They balanced the budget.  WITHOUT a tax hike.  And there are no tax cuts to be seen.

    Now you can't honestly be upset that there's a $36 per pupil school aid fund cut can you?  They saved school districts across the state $86 per pupil over the Governor's proposal!  It's about 1/4th the size of the cut SHE wants to make!

    Are some of the cuts one time fixes?  Sure.  So?  It got the job done as time continues to run out... the big reforms... the MESSA kill, the prison privatization, things like that, those can now be addressed in the giant, starting from scratch, FY2008 budget.

    And the point remains, if the Democrats have different priorities, and if they want to raise taxes, why won't they vote on it?  Where's the vote?  They control the House.  Get on the ball and get going.  Put your money where your mouth is, you know?

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