Michigan budget debate escalates as deadline nears
LANSING, Mich. — House Speaker Andy Dillon said Wednesday that Democrats who control the Michigan House could start passing revised budget bills next week for the fiscal year that starts Oct. 1.
His comments came after Republican lawmakers and Democratic Gov. Jennifer Granholm said they’re anxious for House Democrats to pass their version of legislation addressing a $2.7 billion budget shortfall so final budget negotiations can take place. Lawmakers say they are trying to avoid a repeat of 2007, when Michigan was four hours into a partial government shutdown before the Legislature signed off on a temporary budget deal.
Speaking Wednesday evening on WJR-AM’s “Ask the Governor” program, Granholm said Michigan would not go through another shutdown like the one in 2007, “when we had no budget and no money. Now we have cash from (the federal Recovery Act) but we only have it for two years. We won’t have a cash flow problem but we still have to get budget under control.”
The Republican-led Senate has approved $1.2 billion in cuts that, along with the Recovery Act money, could balance the budget for the next fiscal year.
Granholm prefers cuts of about $572 million on top of those she proposed earlier this year. The governor also would raise about $685 million more through taxes on entertainment tickets, cigarettes and some services while reducing tax exemptions for oil and gas producers, among others.
Dillon has not made his budget-balancing plan public but details should be coming soon as the House prepares to vote on a spending plan that reflects tax revenues falling far faster than anticipated earlier this year. It’s not yet clear if consensus on any one approach has been reached between Democrats in the House who hold a 67-43 advantage over Republicans.
Dillon said he opposes deep cuts to college scholarship programs, early education programs, community health programs and tax revenue payments that help local governments pay for services such as police and fire departments. Granholm opposes some of those same cuts approved by the Senate.
“I believe we can find solutions to the revenue shortfall for those,” Dillon said.
Dillon said the solutions would not all have to come from tax increases because savings could be found through reduced spending or increased efficiency in other areas.
Michigan’s 2007 budget fix included a higher income tax rate and a surcharge on Michigan’s main business tax. But Republicans say that didn’t work, because two years later Michigan again faces a big budget deficit.
“Why is it that today, just two years later, we find ourselves in the very same situation?” said Rep. Kevin Elsenheimer of Kewadin, the House’s Republican leader. “We have failed to make the kinds of reforms that are needed in order to bring this state back and to move this state forward.”
Dillon downplayed a rift with Granholm over when the House would pass revised budget bills. Granholm said Tuesday that the House would pass budget bills Wednesday, but Dillon apparently had no plans to do so. He issued a statement late Tuesday saying all sides needed to “put theatrics and demands aside.”
Dillon said Wednesday the disagreement was about “procedure” and he doesn’t consider it a “continuing divide” with Granholm.
Related News
Michigan legislative panel ends specific bans on archaic crimes like dueling, prizefightingOctober 13th, 2009 Mich. panel votes to end ban on duels, prizefightsLANSING, Mich. — Dueling has become less common over the past couple centuries.
Mich. House members take votes on tax, revenue increases; more likely in days aheadOctober 6th, 2009 Mich. House starts tax votes; more likely to comeLANSING, Mich. — Democratic lawmakers have begun what could be an uphill fight to raise some taxes and find more revenue for a college scholarship program, health care, and local governments in Michigan.
Economically battered Mich. avoids long gov't shutdown, begins fiscal year with interim budgetOctober 1st, 2009 Brief Michigan shutdown ends, interim budget OK'dLANSING, Mich. — One of the nation's most economically battered states is heading into more fiscal fights after surviving a short-lived government shutdown that ended with an interim budget and lingering uncertainty about more permanent spending cuts.
Congress readies stopgap spending bill to avoid government shutdownSeptember 23rd, 2009 Congress readies stopgap spending billWASHINGTON — With the beginning of the new fiscal year just a week away, Democrats controlling Congress are preparing to push through a stopgap spending bill to guarantee against a government shutdown. The routine measure is needed because Congress has failed to wrap up work on any of the 12 annual spending bills for agency budgets that it passes each year.
Granholm outlines plans for cuts and $550M in expanded taxes, fees to balance Michigan budgetSeptember 8th, 2009 Granholm outlines plans for balancing Mich. budgetEAST LANSING, Mich.
Michigan House speaker says lawmakers are close on 2009-10 budget, but not '10-11September 1st, 2009 Mich. speaker: Lawmakers still apart on budgetLANSING, Mich. — With only a month left to strike a budget deal, House Speaker Andy Dillon said Tuesday that legislative leaders and the governor are still having trouble because they don't have enough federal stimulus money to fill large deficits over two years.
Projections send budget into stratosphere, a stack of bills at a timeAugust 25th, 2009 Federal budget numbers now stratosphericWASHINGTON — It used to be the government's budget picture was measured in billions of dollars. No longer. Trillions, that's the yardstick of the 21st century.
Interest rates mixed at weekly Treasury auction with six-month bills dropping to two-week lowJuly 28th, 2009 Interest rates mixed at weekly Treasury auctionWASHINGTON — Interest rates on short-term Treasury bills were mixed in Monday's auction with three-month bills dropping to the lowest level in six weeks. The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.18 percent, down from 0.19 percent last week.
Rates on 6-month Treasury bills at lowest level since late DecemberJuly 14th, 2009 Rates on short-term Treasury bills fall in auctionWASHINGTON — Interest rates on short-term Treasury bills fell in Monday's auction. The Treasury Department auctioned $32 billion in three-month bills at a discount rate of 0.180 percent, down from 0.190 percent last week.
Interest rate on 6-month Treasury bills falls to lowest level since late DecemberJuly 6th, 2009 Rates on short-term Treasury bills dip at auctionWASHINGTON — Interest rates on short-term Treasury bills fell in Monday's auction. The rate on six-month bills dropped to the lowest level since late December, while three-month bills also dipped.
Parliament to approve budget by July 31: MinisterJune 10th, 2009 NEW DELHI - The Indian government said Wednesday it would get parliament's approval for the fiscal 2009-10 budget by July 31. "We have no idea for going in for a second vote-on-account.
Interest rates drop at Treasury auction; 6-month bills fall to lowest levels since JanuaryMay 11th, 2009 Interest rates decline at weekly Treasury auctionWASHINGTON — Interest rates on short-term Treasury bills fell in Monday's auction with rates on six-month bills dropping to the lowest level since mid-January. The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.190 percent, down from 0.195 percent last week.
A's send INF Joe Dillon to Tampa Bay to complete trade for Adam KennedyMay 10th, 2009 A's send INF Joe Dillon to Rays to complete tradeOAKLAND, Calif. — The Oakland Athletics have sent infielder Joe Dillon to Tampa Bay to complete the trade that sent Adam Kennedy to the A's one day earlier.
Buffalo Bills counting on rookie TE Shawn Nelson to catch on quickly in passing attackMay 2nd, 2009 Bills counting on rookie TE Nelson to catch onORCHARD PARK, N.Y. — The Buffalo Bills are hoping rookie tight end Shawn Nelson will be playing a role in a revamped passing attack, which also features Terrell (TEHR'-ehl) Owens.
Lok Sabha passes nine bills amid pandemoniumDecember 22nd, 2008 NEW DELHI - Amid pandemonium over the opposition's demand for Minority Affairs Minister A.R. Antulay's resignation, the Lok Sabha Tuesday hurriedly passed nine bills without any discussion.
Loading ...