Traverse City Record-Eagle

Columns

January 16, 2010

Op-Ed: State budget process broken

Really bold moves are sometimes made by leaders on one side of the spectrum who have the strength and the political will to take a daring leap past their comfort zone.

Perhaps the best example of that was Richard Nixon's reaching out to the People's Republic of China. Nixon could do that because he had been a staunch anti-Communist throughout his entire political career. Similarly, right-wing Israeli Prime Minister Menachem Begin was able to make a deal with Egyptian Leader Anwar Sadat.

Now, something similar might just be happening in Michigan.

Nobody took much notice last year when the business group Detroit Renaissance changed its name to Business Leaders for Michigan, to signify it was extending its focus to the entire state.

They should have. The group, led by its executive director, Doug Rothwell, is now offering a serious plan for getting Michigan government out of its perpetual financial mess.

To set the scene: If there is one thing everyone in Michigan agrees on, it is that the way state government runs is seriously broken. Every year, even in good times, the state ends up with a budget deficit, simply because the funding mechanism doesn't provide enough revenue for all the planned spending.

When a severe recession occurs, this can, and does, mean disaster. Last year the pain was eased in part by the Legislature's decision to use much of the federal stimulus money -- well over a billion dollars -- to plug part of the $2.8 billion gap.

This year, the experts expect another similar-sized shortfall, except that this time, the stimulus money is virtually gone, this year is an election year, and polarization and partisan gridlock are threatening to take Michigan over a cliff.

Republican Senate Majority Leader Mike Bishop has refused to consider any tax increases, no matter how necessary or beneficial they might be in the long run. Some Democrats have been equally as stubborn in refusing to consider cuts.

When Speaker of the House Andy Dillon, himself a Democrat, presented a plan to save hundreds of millions by putting all state workers under the same health care plan, it was quickly denounced by some lawmakers who appeared not to have even read it.

The potential for disaster is huge. But last week, Business Leaders for Michigan presented a plan that would appear to make sense and offer something to both sides. BLM is vastly different from most chamber of commerce groups; its membership is strictly limited to the chief executives of Michigan's biggest job-providing firms, and the presidents of the state's major universities.

This is a pro-business group, but one that is focused on the state's future. Much of what Business Leaders for Michigan is proposing will be welcomed by conservatives. Mainly, they want to cut the Michigan Business Tax in half. They also propose cutting the number of state workers by up to 10 percent and freeze a scheduled 3 percent salary increase state workers are supposed to get this year.

Then, they want to roll back their compensation and health care benefits to the national average for public sector employees. They also want to make it easier for local governments and school districts to consolidate and combine services.

But BLM's leaders acknowledge that things have to be paid for, and some level of public services are in fact necessary. So they also are in favor of extending the sales tax to most services, something that would seem to make sense in a service-based economy.

Not all services; medical and educational services would be exempt, as would business-to-business transactions.

They want that to happen -- and for the overall rate of the sales tax to be lowered from the present 6.0 to 5.5 percent. According to Mr. Rothwell, the group's executive director, the overall net effect would be revenue-neutral. The idea would be to leave Michigan government with the same amount of money to operate with -- but make the state more attractive to desperately needed new business.

Passing this package won't be easy. Special interests and unions are bound to oppose it. Senate Majority Leader Bishop would only tell the Gongwer News Service "we will review their ideas in the caucus and give them consideration ... that's all I can assure."

However, something has to be done about the looming deficits, as far as the eye can see. Ironically, the fact that the state is facing the mother of all budget crises may be the biggest factor pushing the Legislature and the political class into some type of reform.

"We couldn't pick a tougher time to do this, but it is the time to do it," Rothwell said, adding that waiting would be irresponsible.

Whether or not you agree with the specifics of his proposal, it would be very hard to argue that his analysis is wrong.

Text Only
  • Loraine Anderson: Listening to the quiet

    Recently, while looking for something else, I find poet Mary Oliver's Instructions for a Good Life: "Pay attention. Be astonished. Tell about it."

    Continued ...
    Feb 13, 2012 7:06 am 1 Photo
  • Garret Leiva: Reason for season of love

    Money can’t buy happiness, but it can purchase UPC-marked love.

    Continued ...
    Feb 13, 2012 7:05 am 1 Photo
  • Kathy Gibbons: Not 'just a cat'

    I started a new job Monday after being laid off from my last one. That night, I had to write this column to make this week's deadline. But I was having a hard time concentrating on any of it. All I could think about was my cat.

    Continued ...
    Feb 12, 2012 7:14 am 1 Photo
  • Jack Lessenberry: State's prison problem

    Someone once said society needed to decide whether it could afford to lock up those it was mad at, or just those we are legitimately afraid of. What seems bizarre is that given Michigan's financial situation, its leaders seem unwilling to make the rational choice.

    Continued ...
    Feb 12, 2012 7:14 am
  • George Weeks: Snyder and state rebound

    Continued ...
    Feb 12, 2012 7:14 am
  • Saturday, February 11, 2012
  • Adapted in TC: Relationship's strength is at its core

    In the beginning when we take our vows, few of us think "in sickness" applies right then. Perhaps we'll have to deal with that when we're really old or maybe everything will stay right until we die. In this moment, such matters are not in our reality.

    Continued ...
    Feb 11, 2012 7:14 am 1 Photo
  • Thursday, February 9, 2012
  • Foodie With Family: Feeding joy

    The other day, after a protracted conversation about food, my little brother observed that my purpose in life is to make people hungry. As a food writer, there is something to that, but that's not the whole story ... I also feed them.

    Continued ...
    Feb 9, 2012 7:34 am 2 Photos
  • Amish Cook: Warmth helps stove breaks

    The sun is shining and it almost seems like spring with the unusual warmth we are experiencing.

    Continued ...
    Feb 9, 2012 7:30 am
  • Op-Ed: Reform falls on deaf ears

    Surprise! Would you believe that political systems are stacked in favor of those with money? That's probably been true since the days of the Pharaohs. But these days, two things make the normal much worse in our country.

    Continued ...
    Feb 9, 2012 7:24 am 1 Photo
  • Monday, February 6, 2012
  • Garret Leiva: This could change your life

    We live in a world where schemers, dreamers and spammers stuff our email inbox with can’t-miss deals and Nigerian bank windfalls. I, for one, can earn $50,000 in the next 90 days or enter to win a free iPad2. The best part is these wishful dreams can come true without any effort.

    Continued ...
    Feb 6, 2012 7:38 am 1 Photo
  • Sunday, February 5, 2012
  • Giants on Cruz control

    Once again, the Giants come in as the underdog and once again I think they leave with the Vince Lombardi trophy.

    Continued ...
    Feb 5, 2012 7:14 am
  • Northern People: Hay in Texas in nick of time

    Hay donated by Dick Olds of Olds' Paradise Farms in Kingsley arrived at Rick Petersen's farm in the northeast Texas town of Wills Point in the nick of time.

    Continued ...
    Feb 5, 2012 7:14 am 1 Photo
  • On Poetry: Knitting, like love, has a fringe

    Even if this winter's been mild, we've had plenty of chances to appreciate our knitted scarves, shawls, and sweaters. I think the hand-knitted ones are the warmest, holding all that personal care and attention in their fibers.

    Continued ...
    Feb 5, 2012 7:14 am 1 Photo
  • Jack Lessenberry: Overcoming the Morouns

    Americans are justifiably outraged whenever a lawmaker is caught taking bribes or misusing public funds. But what do you suppose the voters' reaction would be if it were discovered that one very rich family was trying to buy off the Legislature solely for their own financial gain? What if that family spent millions on what amounted to legalized bribes to successfully block a project that virtually every corporation in the state agreed was essential to Michigan's economic future? We are talking about the family of Manuel J. "Matty" Moroun, the 84-year-old billionaire who owns the aging Ambassador Bridge.

    Continued ...
    Feb 5, 2012 7:14 am
  • James Cook: Bet against Belichick?

    There's one big reason the pick is New England. Remember 2008?

    Continued ...
    Feb 5, 2012 7:14 am
  • George Weeks: Granholm has new gig

    Over the last half-century, most Michigan governors upon leaving office have gone into or sought another form of public service. The last one, Democrat Jeniffer Granholm, is blazing into the public light with a sprightly talk show gig on California-based national cable TV.

    Continued ...
    Feb 5, 2012 7:14 am 1 Photo
  • Reflections: Images on the pond

    With the cat asleep on my lap, I stared at the flames dancing in the fireplace and my mind drifted back to a long-ago summer afternoon spent with my father.

    Continued ...
    Feb 5, 2012 7:14 am 1 Photo
  • Saturday, February 4, 2012
  • Ask Evelyn: Everybody's doing it?

    Q: My "tween" is always saying "Everybody does it" or "Everybody says it." I know this is an excuse to try to get her own way or get things she wants, but I'm really getting tired of hearing it. Where does this end? — Frustrated Mom

    Continued ...
    Feb 4, 2012 7:14 am 1 Photo
  • Thursday, February 2, 2012
  • Avid cook teaches in Beulah

    Winter can be kind of quiet in downtown Beulah. So Sally Berlin and Jackleen Carmack decided to spice it up a little with "“ what else? "“ food.

    Continued ...
    Feb 2, 2012 8:07 am 1 Photo
  • Amish Cook: Feverish boy still dervish

    Kevin, 6, is home from school today. He has been running a fever since yesterday morning.

    Continued ...
    Updated Feb 7, 2012 10:38 am
  • Op-Ed: 'Turnaround plan' for Michigan

    Business Leaders for Michigan, a group of some of the state's most progressive, far-seeing corporate chiefs, has released a new 2012 Michigan Turnaround Plan — and it's worth checking out.

    Continued ...
    Feb 2, 2012 7:54 am 1 Photo
  • Wednesday, February 1, 2012
  • Dennis Chase: Family tradition continues

    College football recruiting has changed dramatically since Shane Bullough went through the process nearly 30 years ago.

    Continued ...
    Feb 1, 2012 7:28 am 1 Photo
  • Monday, January 30, 2012
  • Terry Wooten: A time of big snow

    The winter of 1957-58 was a doozie. I was in fourth grade. Snowbanks were higher than school bus windows along sections of the back roads.

    Continued ...
    Jan 30, 2012 7:19 am 1 Photo
  • Garret Leiva: Electrifying Super Bowl

    Fans in NFL jerseys and power-suit ad executives will all be abuzz Sunday over the Roman numeral spectacle Super Bowl XLVI. I hope to score the electrical outlet plug-in version.

    Continued ...
    Jan 30, 2012 7:18 am 1 Photo
  • Sunday, January 29, 2012
  • Jack Lessenberry: Health care here, abroad

    For nine months of each year, Dr. Richard Keidan is an elite physician in an upscale Detroit suburb, a surgeon who specializes in removing cancer. But every three months or so, he flies across the globe to Nepal, lands in Katmandu, and then trudges into the interior.

    Continued ...
    Jan 29, 2012 7:14 am 1 Photo