Political News and Commentary with the Right Perspective. NAVIGATION
  • Front Page
  • News
  • Multimedia
  • RSS Feed

    • Tax Hike Wall of Shame

    They said it couldn't be done...


    By Nick, Section News
    Posted on Tue Sep 11, 2007 at 02:13:48 PM EST

    And politcally, they may be right... I have a hard time believing there'll be more than a couple Democrats willing to vote to force the state to live within it's means...

    BUT... Mike Bishop today went ahead and did it.  He unveiled $1.7 BILLION in spending cuts to avoid the multi-BILLION dollar tax-hike Lansing Democrats seem to prefer.

    You can find the sixteen table Senate Fiscal document HERE.

    It certainly isn't a done deal, but the Senate Republicans are putting one foot in front of the other and making progress.  Meanwhile, the House continues to sit on their hands and refuse to vote.  

    Obstructionist much?

    Don't like the Senate Fiscal document?  Propose an alternative.  Simple as that.

    < Jury says the Hip-Hop Mayor is GUILTY! | T-Minus 18 Days and Counting... with a Democrat tax-hike vote on Friday? >
    Display: Sort:
    They said it couldn't be done... | 8 comments (8 topical, 0 hidden)
    Check your numbers (none / 0) (#1)
    by NoviDemocrat on Tue Sep 11, 2007 at 05:46:17 PM EST
    Bishop's proposal which is in table 12 an almost $900 million dollar deficit or a $656 million deficit if the MBT is allowed to double-dip. Those other "cuts" are ideas for areas where the state could reduce funding (if you want to slam local gov't., colleges and universities). They aren't in Bishop's proposal. So he's nowhere near balancing the budget.

    This is horrible news... (none / 0) (#3)
    by leondrolet on Tue Sep 11, 2007 at 08:27:09 PM EST
    The Michigan Taxpayers Alliance is a nonpartisan organization who will assist citizens if they choose to recall their lawmaker who raises taxes. Many of the MTA's members are Republicans who believe that the Party has abandoned them on fiscal conservatism.

    If Senator Bishop gets $1.7 billion in cuts through the Senate, who knows what could happen? What if (this is a fantasy but...) a few Dems in the House vote with Republicans for the cuts, and they pass?

    Who can be recalled? What will I do? Worse, I will lose many members who will simply join the Republican Party and send their money and support there.

    OMG, Senator Bishop, these cuts can't go through!

    Recall 1983.

    Wrong-O (none / 0) (#4)
    by NoviDemocrat on Wed Sep 12, 2007 at 12:15:55 AM EST
    "Table 12 shows how he reduces a $1.7 Billion deficit down to a $656 Million deficit.  Table 13 shows how it is reduced another $579 Million, leaving about a $77 Million deficit, a far cry from $1.7 Billion."

    No it doesn't. Table 11 shows the current base budget which is just over $10 billion. Table 12 shows the Bishop proposal. Table 13 shows the Bishop proposal in detail. It's the same numbers in both 12 and 13.

    Don't believe me? What's the "Early Retirement Adjustment" in 12? $192 million. What's the total for "Early Retirement Reductions" in 13? $192 million. So it's either the same number (which it is) or they're counting it twice.

    Bishop's proposal includes the following:

    • $570 million in department cuts and early retirement "savings"
    • $289 million reduction in K-12 School Aid
    • Some kind of monkey-business with the MBT that would bring in an extra $219 million

    That still leaves a shortfall of $656 million as shown in Table 12. So Bishop hasn't found $1.7 billion in cuts. In fact, $219 million of it is from increased collections from the MBT.

    Bishop's gambit (none / 0) (#5)
    by NoviDemocrat on Wed Sep 12, 2007 at 12:39:25 AM EST
    Right now, Mike Bishop is probably praying that no one actually adopts a budget that embraces his proposed cuts as well as additional cuts outlined in the Senate Fiscal Agency memo (note to rabid Republicans, Bishop didn't propose $1.7 billion in cuts. It's only $850 million and that is offset by a $200+ million tax increase through the new Michigan Business Tax.)

    Why?

    Bishop's proposal includes:

    • Reduction in School Aid Funds by 2.5%.
    • Reduction in funding for Universities, colleges and community colleges by 2.5%.
    • The loss of almost 7,000 state employees to early retirement [along with their skills and knowledge]
    • $219 million increase in the Michigan Business Tax

    Also, there's a set of additional cuts that would be required to actually reduce the budget by $1.7 billion. These include:

    • Almost $400 million dollar reduction in state revenue sharing
    • $160 million elimination of delayed payments to colleges and universities.

    What would be the impact of these cuts? The school aid reduction would hit local schools and the suburban soccer moms and other moderate Republicans in swing districts will be ticked off by such a move. Likewise, the elimination of the delayed payment to colleges and universities as well as reduction in that funding in 2008 will result in massive tuition increases which will hit middle class swing district voters.

    The state revenue sharing cut would be devastating to local communities. Detroit's $272 million dollar reduction would plunge it immediately into a financial disaster. Cities like Flint and Grand Rapids which would be hit with $18 and $22 million reductions in state aid would likely also fall into financial crisis as well. Every major local government would be faced with making massive budget cuts or going to the voters to ask for more taxes. Imagine how thrilled swing district voters in Livonia are going to be to hear that they have to pay more in local taxes due to $10 million in  cuts made by Lansing politicians.

    In order to placate Leon, his pink pig and the rabid anti-tax segment of the Republican Party, Bishop has created this list of cuts, many of which have little or no support even within his own caucus. He knows that they won't be adopted and if they were, it would be a political disaster for the party in the next election. He's gambling that he can dupe enough of the anti-tax wing into believing he's doing "something" knowing full well that this package of cuts will never be adopted. Based on the response so far from some of the duped, his gamble is paying off.

    • Not true by leondrolet, 09/12/2007 10:16:32 AM EST (none / 0)
    And the rest? (none / 0) (#8)
    by NoviDemocrat on Wed Sep 12, 2007 at 11:16:49 AM EST
    OK Leon, you claim:

    "The Senate Fiscal Agency "cut spending" memo does not rely on a "new" Michigan Business Tax increase. The $200 million MBT "windfall" is part of the new MBT law no matter what the Senate or House proposes. Unfortunately, it is already a done deal."

    So if that's the case, then we don't have a $1.7 billion dollar deficit, we only have a $1.5 billion dollar deficit. Why is Bishop getting credit for additional taxes and calling it a cut? Why is Bishop getting credit for something he didn't even do?

    And what about the rest of the "cuts"? Bishop is still almost $700 million short. The SFA laid out potential areas to cut, not Bishop. Bishop hasn't put those on the table. But if you're gullible enough to fall for this little trick, what can I say?

    They said it couldn't be done... | 8 comments (8 topical, 0 hidden)
    Display: Sort:

    Menu

    + create account
    + FAQ
    + Editorial Policy
    + Search

    Login

    Make a new account

    Username:
    Password:
    Join the RightMichigan.com Facebook Group HERE!
    Tweet along with RightMichigan by
    following us on Twitter HERE!

    Related Links

    + HERE
    + Also by Nick
    create account | faq | search