Unluckily for us, our state legislature can’t do their job. It’s that simple. The budget for the state of Michigan needs to be passed into law by September 29 to avoid a partial shutdown of the government, including a potential layoff of 53,000 state-paid employees. Without money to pay for employees and services, the government cannot function.
Currently, there is a projected $1.8 billion deficit. There is a structural deficit: this means that the amount of money the government takes in will never equal what it spends, unless changes are made.
As is common, this problem arises from an unwillingness to compromise by both the Republicans and Democrats. They are working weekends to get this done. Unfortunately for them, working harder is not as effective as working smarter. Now, I am no expert on Michigan politics or policy, but it’s just commonsense that if a) you have an important deadline and b) you don’t agree with your coworkers, you compromise.
Republicans have supported a continuation budget, which would merely continue the current structure, giving the legislature more time to sort this out. This continuation would only increase the deficit, with each day of government-run programs being underfunded for the time being. To put it bluntly, this is a stupid idea. The Republicans are essentially saying, “Give us more time (which we’ve used poorly thus far) to come up with even more money (because of the increasing deficit) to argue about the same things we are arguing about today.”
The solutions are there, the two heavily dichotomous sides can compromise. The Democrats don’t want to cut programs, and Republicans don’t want to raise taxes. I don’t blame them. There will be political hay to pay for both parties. But they signed up for this job. Find a plan to do both. We need some leaders to compromise and get the job done. What company will locate here if its government can’t get its job done, and worse, if there is no government to speak of? State legislators should see this as an opportunity to get the state back on its feet, or at least off of its ass. Raise the income tax (and/or the sales tax), cut some spending. I won’t provide specific ideas for this budget, as I’m only slightly informed about the specifics of the consequences of such moves. But, $1.8 billion is too much to tax, and too much to cut.
I think a potential fix would include a progressive income tax. Now, this won’t happen this year, as it has to be approved by the public in a referendum. But, higher income earners would pay more, lower income earners would pay less. This would capitalize on the horrible income gap, creating more revenue, but giving a break to those who need it most. But that argument is for another day.
Addendum:
Cuts that a government shutdown would entail (taken from here)
The impact of a state government shutdown (among other things)
-The Secretary of State’s 150 branch offices could close.
-Officials in at least 18 public school districts have said the districts would have to shut down if they don’t receive their October state aid payments, which are supposed to be sent Oct. 22.
-Once inventories in stores are sold, customers would not be able to buy hard liquor.
-Prisons would remain open and fully staffed. State Police patrols likely would be reduced.
-139 road and bridge projects would shut down.
-Permits would not be issued; no regulation of incoming freighters to enforce new law on ballast discharge.
-Cities, townships and counties across Michigan would miss revenue-sharing and public transit payments.
-The Michigan Gaming Control Board would close Detroit’s three casinos; the state Lottery also could be shut down.
-The Department of Natural Resources might have to close state parks, but it would keep a small law enforcement presence in the field during the archery deer season that opens Oct. 1 to prevent poaching and other violations.
Contact your Senator and Representative
Bravo! You’ve done an excellent job from my perspective on summarizing the issue at hand and the stumbling blocks to its solution. I agree 100%: the problem’s too big to be solved by program cuts or tax hikes alone. The resolution needs to include prudent tax hikes and appropriate program cuts, both coupled with reasonable reforms to streamline government and its operations.
As a caveat, on Monday I emailed both my state senator and state representative telling them to get the job done. Perhaps they’re too busy trying to do just that, but I don’t see the result nor have I gotten a reply. Perhaps their staffers are too busy, too?