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    Potential savings and reforms... THE LIST! (v1.0)


    By Nick, Section News
    Posted on Thu Jun 28, 2007 at 11:08:29 AM EST

    Following hot on the heels of the action in the Senate this week, the continued intransigence of the House and the way Governor Granholm became completely unhinged there's been more and more discussion about just what exactly we CAN cut and just what exactly we CAN reform in Lansing to make sure these budget deficits don't happen in the future and more importantly, to prevent the radical left from picking our pockets and robbing us blind.

    Earlier this week we broke the story and were the first to unveil the Senate GOP reform lists.  This generated some talk in the MSM.  Gongwer referenced Right Michigan and MIRS went ahead and just talked about what we'd broken without attribution... which was awfully nice of them (not that I'd really expect a mainstream news outlet to give much credit to anyone in the new media to begin with).  

    Update [2007-6-29 9:11:22 by Nick]: Just spoke with MIRS about their piece and they claim to have had the document in hand before we broke the story. Not what I'd been told by my source in the Senate... somewhere along the line at the Capitol some wires apparently got crossed. I took MIRS to the mat and now I'm officially letting them up and personally dusting them off on this one.

    But more than that it generated some discussion on the site and about three metric tons worth of email about other potential savings that didn't make the Senate list.  We've gone over most of the savings that are out there thirty or forty times but it's always been piecemeal.  A reform here, a chance for savings there.  

    I figure it's about time to get them all collected so bloggers, lurkers, readers, voters, residents, citizens, taxpayers, families, legislators, local elected officials and anyone else I may have missed can see the enormity of the potential for real savings in Lansing.

    All of that said, this list is certainly NOT exhaustive.  If there's anything I've clearly and obviously missed post it after the story and we'll keep the list growing.  Any other ideas?  Let everyone know!

    So without further ado, potential savings and reforms to state government that will balance the budget without job-killing tax increases include:

  • Reform eligibility and work requirements in welfare to be more in line with our surrounding states and the national average: est. annual savings of $30 million.

  • Limit welfare to 2 years for able-bodied adults.

  • Medicaid reform: est. annual savings of $60 million.

  • Prison reforms (aside from employee wage concessions): est. annual savings of $200 million from targeted privatization and reforms to address recidivism.

  • Tether all 65 year old non-violent prisoners and put them out on probation.

  • Tether non-violent criminals and charge them to be out on a tether.

  • Seek wage concessions in corrections to bring us inline with the national average instead of releasing felons: est. annual savings $150 million.

  • Senate GOP Public employee healthcare and retirement reform: est. annual savings of $220 million.

  • Privatize the public employee pensions: - cash out pension fund and change them to a 401K.

  • Define contribution for all state employees/teachers.

  • Change healthcare benefits for state employees 65 years old over to Medicare.

  • Consolidate Departments- HAL/DIT/DNR/DEQ: est. annual savings $3 million if consolidated.

  • Suspend state worker raises for `08: est. savings $109 million.

  • Agree to suspend prevailing wage on all public projects when our unemployment rate exceeds 20% of the national average: est. savings of $150 million.

  • Cut executive travel expenses: est. savings $11 million.

  • Eliminating barriers to consolidation (SB 550 & 551, Sen. Garcia):
    --Clarifies statutes to provide that when local units of government choose to consolidate or transfer services that the highest wage and benefit package of the two units does not have to be paid.

  • PA 312 Reforms (Language being drafted):

    --Adhering to time limits for the arbitration and awards process;

    --Requiring that the timing of the presentation of the last best offer be moved to the beginning of the process to limit the number of items arbitrated and to facilitate faster resolution;

    --Increasing the number and quality of arbitrators through training and a more refined selection process;

    --Clarifying what constitutes a local units' "ability to pay".

  • Sell some or all of the state lottery:  $750 million.

  • Cut legislative pay 5% (or more).

  • Cut public employee salaries 1% for those under $50K, 2% for those under $100K and 4% for those over $100K.

  • Remove or loosen the cap on Charter Schools to bring private dollars into the education system and force traditional public schools to "sharpen their pencils."

  • Separate research from general support for Universities.

  • Change the funding mechanism for Universities to per-pupil funding like in K-12.

  • Privatize non-instructional school services.

  • Attract new jobs by passing Right-to-Work legislation.

  • Shovel ready permitting:  State, county, local unit permits pre-approved.

  • Consider selling sponsorship rights for public schools to local businesses.

  • Cancel plans to waste $5 million on a new State Police HQ and instead continue to lease property on the MSU campus for $1 a year.

  • Eliminate the Office of the First Gentleman: Savings of $250,000 a year.

  • Reign in state contracts:   All told information and technology contracts alone have ballooned by over $1.67 BILLION.

  • Prohibit the state from spending money to lobby itself: Savings of at least $1.35 million annually (based on 2006 numbers).

  • Prohibit union officials from drawing a salary from the taxpayers for doing union business.

    Fresh thinking, eh?  Most of these ideas I like quite a lot.  Note, if you will, that nowhere on the list is a single dollar being cut from K-12 funding nor are the old and infirm being cut from medicare or Medicaid, insuring that the state won't cause "people to die."  

    Please add any changes, savings or reforms that are missing in the comment section.  And the next time someone tells you the state absolutely MUST have more cash and that tax hikes are the right thing to do dig out this list and illuminate things for them.

  • < A Michigan Primary Plan for 2008 | Carl Levin supports amnesty for illegals >
    Display: Sort:
    Real reforms (1.00 / 1) (#1)
    by NoviDemocrat on Thu Jun 28, 2007 at 12:07:10 PM EST
    How about some alternatives like these:

    • Part-time legislature with part-time salaries (strange that it wasn't on your list)

    • Reduce legislative staff (The legislators earn enough money to pitch in and help answer constituent requests)

    • Freeze or reduce salaries for legislative staff

    • Increase health care contribution from legislators and legislative staff

    • End lifetime health care benefits for legislators

    • Implement Medicaid Estate Recovery program
    http://www.mackinac.org/article.aspx?ID=7856

    + Eliminate all tax abatements.
    Revenue generated can be used to reduce overall tax rates. Business environment will improve as companies see that no one company gets preferential treatment over competitors.

    + Eliminate monopoly for Beer & Wine Wholesalers


    Made-up savings (1.00 / 1) (#2)
    by NoviDemocrat on Thu Jun 28, 2007 at 12:07:35 PM EST
    Some of these are simply made up. For example:

    "Consolidate Departments- HAL/DIT/DNR/DEQ"

    How in the world does that save any money? Those departments, with perhaps the exception of DEQ and DNR have almost no overlap in services.

    "Reign in state contracts:    All told information and technology contracts alone have ballooned by over $1.67 BILLION."

    Still trying to ride that horse? I know that everyone is shocked to learn that the state now spends more on computers and networks than they did in 1999. Why can't they just use slide rules and typewriters?

    says the man (5.00 / 1) (#3)
    by Nick on Thu Jun 28, 2007 at 12:18:07 PM EST
    who ignores the advent of the computer when arguing that there are fewer state employees today than before the invention of the microchip.

    Of course we need to spend money on technology.  But we don't need to be throwing away $1.67 BILLION MORE than we contract for.

    That's a sign of government run amok and a complete lack of oversight.

    And it's ONE example.  Who knows what else is out there... typically where there's smoke there's fire.

    But keep defending the status quo and rampant government waste.  

    • Not really by NoviDemocrat, 06/28/2007 12:48:29 PM EST (1.00 / 1)
    as far as your other reforms... (4.00 / 1) (#4)
    by Nick on Thu Jun 28, 2007 at 12:20:18 PM EST
    thanks for pitching in.  Don't disagree with any necessarily, though I'm personally still not sold on the part-time legislature concept.  

    But you're absolutely right that it's a possibility and something that should be on the list.

    I don't care who the finger points at (5.00 / 1) (#6)
    by Nick on Thu Jun 28, 2007 at 12:49:53 PM EST
    mismanagement is mismanagement.

    I know it's hard for some of you on the left to understand this but it really isn't all GOP all the time for conservatives.  

    Except (1.00 / 1) (#7)
    by NoviDemocrat on Thu Jun 28, 2007 at 12:54:46 PM EST
    you haven't proven there is any mismanagement. I would guess that some of the increases in contracts is due to lack of oversight. But I doubt that applies to most of the contracts, even with Big John's involvement in it.

    Let me give this number one more time (5.00 / 1) (#8)
    by Nick on Thu Jun 28, 2007 at 01:08:24 PM EST
    The contracts have BALLOONED:

    $1.67 BILLION.

    $1,670,000,000.

    167000000000 pennies.

    That doesn't happen because things are being done efficiently.

    I don't accept the premise BUT (5.00 / 1) (#11)
    by Nick on Thu Jun 28, 2007 at 01:28:10 PM EST
    even if I did... so?  I'm not blaming anyone or pointing any fingers.  It's a problem.  It needs fixing.  

    To paraphrase the great John McClane:

    'If you're not a part of the solution you're part of the problem.  Stopping being part of the problem and put the other guy back on.'

    I was promised (5.00 / 1) (#14)
    by John Galt on Thu Jun 28, 2007 at 08:24:19 PM EST
    That we'd have all of this fixed now.  Jenny Granholm to the rescue!  We'd be swimming in jobs.

    I was promised that I'd be blown away.

    Liberals are quick to call Bush a liar,  but defend their own flock.

    I was promised to be blown away.  Is all of her huffing and puffing trying to get me to move out of state?

    • Keyword = by motorcity, 06/30/2007 08:21:18 AM EST (5.00 / 1)
    Who's "we", kemosabe? (5.00 / 1) (#17)
    by John Galt on Mon Jul 02, 2007 at 12:16:46 PM EST
    I'm unconvinced a part-time legislature would solve anything.  Everyone was pretty keen on term limits but that seems to have backfired.

    Term limits were never proposed to solve a budget crisis.

    I believe state legislators should be full-time.  How many and what caliber of people do you suspect can make that kind of part-time commitment?

    Actually, the idea is that MORE people would be able to join the legislature when it's part-time.  A full-time legislature requires people who are independently wealthy - after spending 6 years in the house, where do you go next?  8 years in the Senate?  And then your old job skills are 14 years out-of-date.

    Try asking your boss if you could take 1/2 year off and see if they don't think about replacing you.

    Good point, but that half year doesn't have to be six months straight.  Try asking for 6 years off, and then trying to get your old job back when you're done.  Hope you invested that Legislature paycheck wisely!

    Now, if we instead think a shorter sessions would save money on its own, that may make sense.  But we should at least consider the more idle time politicians have the more trouble they can get into.  Heck, they could become 365-day/year fund raisers and near impossible to displace as incumbents--then you're back to term limits.

    Rumor has it, a full-time legislature is already a 365-day fundraiser.  You have lobbyists and PACs all lined up to take you to lunch and dinner.  Fundraising isn't dependent upon how much the politician works... even while he's in session, he can have people fundraising for him.  So this is a kind of null argument.  

    The people control incumbency.  The people vote politicians out of office repeatedly.  The fact we went to term-limits is ridiculous.  There were other good reforms enacted at the same time (taking away "lifetime" paychecks for politicians... John Engler is raking in almost $350k from his prior jobs in Lansing).  

    A willingness to cut state expenses by giving back small things, like state-owned vehicles for judges, to a part-time legislature, is the kind of thinking we need in Lansing.  We need less Government, and less cost-of-Government.  

    Engler "deficit" (5.00 / 1) (#19)
    by John Galt on Mon Jul 02, 2007 at 12:50:29 PM EST
    From Michigan Daily, January 2003:

    "The proof to me is in the $1.8 billion deficit," Rep. Andy Meisner (D-Ferndale) said. "The end result has been a fiscal disaster and a situation where middle- and low-income families have been short-shifted."

    What jumped out at me immediately wasn't the Democrat-slamming-Engler quote.  It's that, since 2003, we've been facing the same $1.8 billion "budget deficit".

    I don't agree with the premise, and certainly not with Liz Brater's "tax structure" argument...

    But what really stands out is that we've had this problem since January 2003.  4.5 years later, Two-Penny Jenny has still not resolved it.  Instead, she's put the state in even greater peril.  Borrowing until the state's Credit Card is maxed out, and still hasn't fixed any of the "structural problems"

    So if this really was a problem that Grandmole inherited, why isn't it fixed yet?  Bush is in a quagmire in Iraq, but Granholm is just along for the ride in Michigan?

    I'm ashamed of you, NoviDemocrat.  I'm ashamed you cannot admit that your little woman has seriously dropped the ball here.  It's one thing to be partisan, but at least be intellectually honest.  I understand, you can't openly admit (in enemy territory), but admit to yourself and drop the charade.

    Michigan outsourceing of jobs (1.00 / 1) (#20)
    by teamster339 on Wed Jul 04, 2007 at 11:16:35 AM EST
    if we cannot stop our jobs from being outsourced to other countries then lets cap it by enacting a law that
    will keep at least 75% of the work in our country

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