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Home » News

Melton plan mixes GOP, Democrat proposals

March 19, 2010

By Glenn Gilbert

Maybe it's just springtime in the air, but is a consensus possible over the idea of letting Michigan voters set spending priorities for state government?

Senate Majority Leader Mike Bishop of Rochester seems open to the idea of letting Democrats put a proposal seeking more revenue for schools on the ballot if they will approve a Republican plan to allow voters to reduce state employee wages and benefits.

On the other side of aisle, State Rep. Tim Melton, D-Auburn Hills, says a ballot proposal to expand the sales tax to include services or some other form of tax increase must be tied to spending reductions and reforms.

"Go to the ballot and let the people of Michigan decide," Melton said at a recent forum sponsored by the Center for Michigan, an Ann Arbor-based think tank.

Why not let voters decide both issues during the Aug. 3 primary?

It is true that we elect state government leaders to make such decisions for us. But they have not done a good job of working out differences in a divided government situation. Democrats hold the governor's office and a majority in the House of Representatives while Republicans control the Senate.

Bishop in January said the pay of teachers, professors and state and local government workers should be cut by 5 percent and held at that level for the next three years to save money.

That would likely entail voter approval of a constitutional amendment that would suspend collective bargaining rights and allow the pay cut to take effect.

Another constitutional amendment would be needed to require that all public employees pay 20 percent of their health care premiums unless they participate in a health savings account or wellness program. If they did, they would have to cover 15 percent of their premiums.

By law, any ballot proposal would have to be placed on the ballot 60 days ahead of the Aug. 3 primary. Ballot issues for constitutional amendments require two thirds approval of each chamber if they are done via the legislative route.

It would seem to make sense for both parties to agree to allow the voters to settle these contentious issues.

Actually, Melton's proposal would not require a constitutional amendment, and so would only need majorities in both chambers to put on the ballot.

Melton and Bishop have discussed Melton's proposal, which actually could provide a framework for a bipartisan agreement without the Bishop pay cut and benefit reform ideas.

Here's why.

The way Melton wants to set up his proposal would be for the Legislature to enact long-sought reforms that:

n Replace defined benefit plans for new state workers with defined contribution plans, such as 401(k)s.

n Consolidate school services where possible, except for academics and athletics.

n Eliminate double-dipping that occurs when public employees retire early and then are hired back into the system, allowing them to collect a pension and a wage at the same time.

n Institute one health insurance program for all state employees.

Then voters would be asked to approve - or disapprove - a tax plan that would extend the state sales tax to services, but also repeal the unpopular 22 percent Michigan Business Tax surcharge and raise the minimum revenue threshold at which small businesses are taxed. Proceeds from the tax plan would be used to pay for the up-front costs of the reforms and stabilize funding for education.

"It seems like it's a good mix," Melton said.

"People crying for more school funding - this is their chance," Melton said. "People crying for MBT surcharge repeal - this is their chance."

One way or another, reforms have to occur, Melton said. He said the reform ideas "have been around for decades. Nobody has had the guts to do it."

Under Melton's plans, the reforms would occur regardless of how voters decide on the tax issue. The issue would be whether they want to balance the budget with a combination of cuts, reforms and taxes, or whether it would be all reforms and spending cuts.

"Let's have the guts to let the people decide," Melton suggests.

Hopefully this sane logic is simple enough for Melton's colleagues to understand.

Glenn Gilbert is the executive editor of The Oakland Press. Contact him at glenn.gilbert@oakpress.com or 248-745-4587. Follow him on Twitter.

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Reactions to the Governor's budget

February 18, 2011 - Today, I sat down with Rep. Chuck Moss at the Oakland Press to discuss the Governor's Budget. Thanks to the Oakland Press for having us in....WATCH NOW



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