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    AP Reports Senate preparing $1.7 billion in cuts, House continues to ride the pine


    By Nick, Section News
    Posted on Tue Sep 11, 2007 at 06:58:13 AM EST

    Everyone is back in Lansing today, returning to the bargaining table to try to iron out the impending budget mess that's now only about three weeks from shutting down the government (apologies to Speaker Dillon's spokesman, it's no longer early in September).  So what can we expect?  Shaping up to be a lot of the same old song and dance.

    The House continues to work aggressively at finding new and creative and cost effective ways of keeping their hands warm.  And they think they might be on to something.  Turns out if you sit on them they stay all nice and cozy.  Now, it stops you from getting any work done, but hey, that's alright, with a six vote majority and a governor from the same party what's the point of doing any work.  Just wait for the Senate to act and then tear down whatever they say or do.

    The Senate, meanwhile, as promised, has started unveiling cuts and reforms that would literally solve the budget deficit without a tax hike.  

    They're tough cuts.  They're not popular.  They're going to make special interest groups crazy.  They're going to bring teachers, librarians, art museum curators, social service workers, welfare queens and all the other core Democrat voting blocks right straight to Lansing in protest.  But they force the state to live within it's means and, frankly, it shows the Senate has guts.

    Read on...

    There's literally no way Democrats will go along with many of the cuts.  They'd be alienating too many friends and allies and why would you do that when you can just stick it to the tax payers and call it a "bi-partisan" agreement while you parade around your token RINO turncoats?

    Then again, that would require the House to actually propose a tax hike and (gasp) hold a vote.  As the Associated Press reports this morning, there's actually a chance that after 244 days it could finally happen.

    The Democrat-led state House on Tuesday or Wednesday may vote on a proposal to raise taxes, part of a plan to eliminate a projected $1.7 billion deficit for the budget year that starts Oct. 1.

    Several ideas have been discussed, but it's most likely the House will vote to raise the income tax from the current 3.9 percent to either 4.4 percent or 4.6 percent.

    (Emphasis mine.)

    Meanwhile, back across the hall where the big boys have actually been working for the last eight months:

    The Republican-controlled Senate on Tuesday plans to unveil $1.7 billion in proposed spending cuts and government restructuring changes as an option if House Democrats don't initiate a tax increase...

    "If these cuts can't be stomached by Democrats, they need to come up with some other alternative," Bishop spokesman Matt Marsden said, noting it's just as politically unpopular to balance the budget with only cuts and government reforms as it is with higher taxes.

    And obviously, that's an appropriate note to make.  Though I'm forced now to believe that the Senate Majority Leader is an eternal optimist.  I think at this point he could walk into the Treasury with a suitcase containing $2 billion, enough hard cash to cover the pending deficit and then some, and the Democrats would still hold a press conference telling everyone that Republicans don't care about Michigan and that they're using one-time tricks and gimmicks to fix the budget mess.  Only a giant tax hike, they'd moan and scream, could really solve the state's problems.  

    Then they'd look at Mike Bishop and tell him to leave the suitcase on the table and to go draft the tax-hike legislation himself because c'mon, they can't be bothered when they have all that money to count.

    And if the Lansing Democrats didn't take that approach the Ivory Tower Democrats certainly would.  Look no further than this morning's Detroit Free Press, where they opine on the editorial page about how evil and wrong it is for Republicans to propose spending cuts without doing the work of the House as well.  The piece almost reads like a House Democrat talking points memo.  

    No word, yet, on when the FREEP will officially call for a unicameral legislature via a complete and sudden abolition of the Michigan House of Representatives.  I mean, they don't seem to think the House has a job or a purpose in Lansing.  Why waste the tax dollars?

    Just a reminder, by the way, of what's at stake when we're talking about trying to get a state economy moving again for the first time in five years, Michigan's biggest industry (besides the production of ejector seats for the U of M bandwagon), the domestic autos, are this close to bumping up against the expiration of their contracts with the United Auto Workers.

    The Detroit News reports:

    Contract talks between the UAW and the automakers typically run until the last minute. With the deadline falling on a Friday, talks could continue through the weekend with little consequence. If a deal isn't reached, one of several things could happen: the two sides could work under the existing contract as negotiations continue; the union could strike; or the car companies could lock down their factories.

    On the bright side, the Big 3 and the UAW recognized that the latter two options are good for no one and that sort of saber rattling hasn't yet begun.  Hopefully it won't.

    After last week's announcement that Audi and VW are spending $100 million just to leave Michigan for the east coast, a shutdown of the domestics, like a multi-billion dollar tax hike is something Michigan can't afford.

    < College Republicans Start the Year off RIGHT! | Michigan Dems hoped you wouldn't notice while they raked in tens of thousands from wanted fugitive >
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    So let's make a prediction (none / 0) (#1)
    by NoviDemocrat on Tue Sep 11, 2007 at 09:25:29 AM EST
    It's obvious Bishop and Dillon are playing the political equivalent of chicken, flying towards each other with mutual incompatible positions. There's no way Bishop's cuts can pass the House and there's no way that Dillon's tax increase can pass the Senate.

    So who's going to blink first? Will Bishop cave in and allow a tax increase to pass the Senate? You've made it hard for him since any tax increase will be seen as a defeat for the Republicans. It will  show that they don't have the guts to stick to their guns. Bishop has the numbers in the Senate to block a tax increase. But does he have the leadership to hold together his caucus and the guts to stick to his convictions?

    So you're asking what's more likely (none / 0) (#2)
    by Nick on Tue Sep 11, 2007 at 09:34:47 AM EST
    That two Republicans in the Senate vote against their party's principles or that six members in the Democrat House go against theirs by supporting sensible government reforms...

    I guess that's a fair question.

    But here's another one... I'll be consistent in my approach with Republicans who sell out.  Will you with the Dems?

    That's your problem (none / 0) (#3)
    by NoviDemocrat on Tue Sep 11, 2007 at 10:27:05 AM EST
    You've been running around for months saying that any Republican who votes for a tax increase should be punished. I haven't been saying that Democrats should vote for a tax increase and I haven't said that they should be punished if they don't. I'm willing to give them so room to work out a solution that makes sense. If they vote in ways that show that they're more interested in being Republican-lite than Democrats, then they'll be some consequences for that in the future. But all of your bluster, Leon's pink pig and the Saul's rhetoric hasn't done anything to get you closer to what you want out of the process. At the end of the day, if there's a tax increase, it will show that Republicans lost the battle (again).

    I'll take that... (none / 0) (#4)
    by Nick on Tue Sep 11, 2007 at 10:44:11 AM EST
    A tax hike will show that the Democrats got their way.  OK.  I'll concede that point.

    Party positions (none / 0) (#5)
    by NoviDemocrat on Tue Sep 11, 2007 at 10:53:57 AM EST
    Republicans already rolled on the MBT. Remember that Senate Republicans insisted that it include a tax cut? What happened to that?

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