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 Things are heating up in Lansing regarding the budget.  As we struggle to operate with reduced revenue, it might be helpful to discuss some of the proposals to reduce spending. 

 State revenue is expected to be down another 5% this year. 

Non-partisan fiscal analysts estimate a budget shortfall between $1.6 and $1.7 billion.  Approximately $400 million of that is a deficit in the budget that funds schools. 

 By far, the largest areas of spending in state government are:

•  K-12 and Higher Education
•  Corrections
•  Public Health and Medicaid
•  Public Assistance Programs

 The Governor has already made some recommendations to reduce spending and bring more efficiency.  These include:

•  Encouraging eligible state and school employees to retire
•  Requiring new state employees to pay more for healthcare
•  Creating a Medicaid inspector general to root out fraud
•  Eliminate retiree dental/vision coverage
•  Reduce the state's prison population

 All of these proposals have merit, and all will cause heartburn for different groups for different reasons.  The Executive and Legislative branches must work together to get any solid reforms in place - without getting distracted by 2010 election year shenanigans.  We must not abrogate our responsibility to pass a balanced budget. 

 A couple weeks ago, I blogged about education funding, and I asked for suggestions on how we might help streamline school operations.  Your feedback was amazing.  After launching a new school funding reform page on my website, I received hundreds of responses with ideas.  Some were genuine, some expressed frustration, but all came from concerned Michigan residents and all are valuable.  Recurring ideas include:

•  Addressing the cost of healthcare by pooling public employee plans, developing better plan design, or greater cost sharing between employer and employees
•  Eliminating duplicative reporting requirements
•  Eliminating barriers to service and school district consolidation
•  Capping school district fund balances
•  Reviewing tax expenditures that drain school funding
•  Moving all tax collections to the summer

 The House Education Committee has taken interesting testimony over the past two weeks - from education funding supporters and from those who challenge school funding models.  We'll continue to take testimony and more ideas.  It is very encouraging to hear from school officials that have been on the front lines of the economic downturn.  

Michigan's citizens are resilient people; we've endured incredibly difficult times the last few years.   As legislators, we need to shelve partisan talking points and fix things.  We must balance our tight state budget, and we must take steps to support an economic turnaround.  The cuts over the last few years have been difficult, but they reflect the tough times we are living in.  

Michigan is in need of continued overhaul.  Our roads funding is inadequate, doctors are not adequately reimbursed, firefighters and police officers get laid off, and preventive programs get cut.  An honest discussion of ways to restructure how we bring revenue in is important.  However, our first obligation is to present the governor with a responsible and balanced budget, within our means. 

I said it on our last post, and I'll say it again.  If Michigan families have to live within their means, Michigan's government does as well.

 Thanks for reading.