This question is taken from Business Leaders for Michigan’s one-page tool for voters, “10 Questions Every Voter Should Ask Candidates Running for State Office.” The questions address the most urgent issues facing all Michiganders – the economy and jobs.
Ask your candidate, “Will you support a pay as you go policy that would prevent the state from adopting new programs without being able to pay for them?”
Why is this question important?
When Michigan was a wealthy state, it could afford to fund all programs well and not set priorities. But with per capita income at 37th in the nation, we are now a relatively poor state, and need to set spending priorities that will re-grow the state’s economy. Since 2000, state tax revenue has declined or been flat. However, the state has continued to add new programs, which has exacerbated budget shortfalls while state revenues have declined. Unless revenues increase or other program expenses are reduced, the state should not be adding new programs that create additional unsustainable spending pressures.
Here are some answers voters should look for from candidates for State office:
In its Michigan Turnaround Plan, Business Leaders for Michigan proposes that legislators adopt no new programs unless eliminating others or revenues grow. This will help instill fiscal discipline and put the state back on a sustainable budgetary path. To help with adopting priorities, the state could:
· Adopt a strategic plan with clear goals, expected outcomes and metrics.
· Require fiscal notes for all new legislation and regulations estimating the implementation costs on government and business.
· Adopt zero-based or similar budgeting systems to increase results.
· Adopt no new programs unless eliminating others or revenues grow.
The full list of questions can be found at: www.michiganturnaroundplan.com. The Michigan Turnaround Plan is a holistic, fact-based strategy to get Michigan’s economy back on track.
Over the past eight months, many organizations around the state, thousands of individuals and nearly all of the state’s major newspapers have expressed their support for the Michigan Turnaround Plan.
In an effort to continue this momentum and build support for the Michigan Turnaround Plan (MTP), we’ve created an MTP Action Kit. The Action Kit identifies a number of simple ways individuals and groups can express their support for the Plan.
Also, an updated version of the MTP is now available. Dubbed “MTP 1.5,” the Plan includes updated data and action steps that communities & business leaders can take on their own to advance the objectives.
You can download a copy of the MTP Action Kit or updated MTP by visiting www.MichiganTurnaroundPlan.com.
Almost every state in the country will face a budget deficit next year and more than half will face budget shortfalls in the double digits. An article in the current issue of Time Magazine (Inside the Dire Financial State of States, June 28, 2010) discusses how states across the country are facing staggering budget deficits for the third straight year. The billions of dollars of federal stimulus money will end this year and, so far, Congress has been unwilling to support a $50 billion emergency aid bill. Therefore, states across the country, including Michigan, will have no other choice but to address their budget deficits head on and address several difficult issues including education, Medicaid, public employee pay and benefits, and corrections funding. Another major issue is the long-term pension fund obligations that are not fully funded. The Pew Center on the States estimates that state pension plans as a whole are at least $1 Trillion short.
Michigan’s budget deficit will continue to grow if we don’t adopt a long-term, comprehensive budget solution that includes tax, budget, and fiscal reforms. If Michigan wants to be a competitive place to do business and retain, grow and create jobs, we must tackle these difficult issues sooner rather than later.
Interesting Facts from the Article:
· The estimated collective gap between states’ income and obligation next year is $55 Billion.
· The expected growth in the number of Medicaid recipients on average next year is 5.4%. Anticipated funding is expected to hardly grow at all.
· 31 states are projecting a 2011 shortfall of 10% or more as a percentage of this year’s budget.
· According to the Pew Center, half the states ran fully funded pension plans in 2000, but by 2008, that number had dwindled to four.
We’re all frustrated by the limited progress being made fixing Michigan’s economy. But the answer isn’t to give up or feel the problem is too big for you to impact. The answer is to get engaged!
-Get every civic, business or community group you are part of to spend time talking about the Michigan Turnaround Plan.
-Get those groups to express their formal support for the Plan – it doesn’t mean you have to agree with every recommendation, just most of it.
-Ask candidates running for office very specific questions about what they will do if they are elected.
-Ask candidates how they will work across party lines and seek reasoned compromise to get things done.
-Give financial support only to those candidates that are aligned with your views.
-Write or call your elected leaders. Praise them when they cast difficult votes. Tell them when you disagree.
-Talk to your employees, friends and co-workers about the Turnaround Plan and ask them to get engaged.
As citizens of this great country and state, we have a responsibility to spend some time engaging in the governance of our democracies. Most of us haven’t allocated enough time to do this in recent years. But that has to change if we are going to leave a better country and state for the next generation. It’s time to engage!
An observation – One of the reasons we sometimes don’t feel like progress is being made is because we have a propensity to celebrate success only when something really big or controversial happens. Yet, the state passed teacher retirement reforms that will save about 3 billion over ten years and little was heard outside the editorial pages of a few newspapers! While more actions are needed to turnaround Michigan, this was a big step forward. Maybe you should write your legislator if they voted for this and thank them for their courage!
-Doug Rothwell
This week the state legislature began cutting higher education again to balance the budget while they still hadn’t acted to stop a 3% pay raise scheduled to go into effect for state workers. In essence, the State is deciding to give itself a pay raise at the expense of college-bound students. The $50 million it will cost to grant the raise is about what the state spends on Oakland, Ferris State or Michigan Tech Universities. Where would you invest Michigan’s precious revenues?
Michigan’s economy didn’t get where it is overnight – it took 50 years of growing slower than the rest of the nation. So we aren’t going to correct this situation in year or with just one or two “silver bullets.” It’s going to take us all supporting a holistic package of reforms – that means we have to put Michigan first and give a little of what we want today for the good of our long-term future. You might think that’s going to be a tough sell in a state the leads the nation in unemployment and whose per capita income has fallen to 37th in the nation! In fact the opposite is true – polls say the people want bold reform and recognize it has to include both budget and tax changes. So tell your legislators, who are getting pressured everyday by those that resist change, that you are behind them and will support them if they put Michigan ahead of the short term interests.
If the legislature fails to act by April 11, state workers will get a 3% pay increase in October. State employees are good workers and deserve our support. But when taxpayers have seen their pay cut or frozen for several years to a point where their per capita income is now below the national average, it makes no sense to ask them to raise the pay of State workers who are paid above the national average when critical state services are being cut. You can do something about it – call your legislator NOW and tell them you want them to act to stop the pay raise! Click on the “Tell Your Legislator How You Feel” button to find your representatives and write them a note!
Business Leaders for Michigan issued the following statement in reaction to the Governor’s Budget Address today:
Business Leaders for Michigan is committed to supporting a comprehensive and holistic plan to transform Michigan’s economy and create jobs. The Michigan Turnaround Plan we developed recognizes that no one action will turn around Michigan and identified five integral steps that are needed to make Michigan a “Top Ten” state for job & economic growth.
Fiscal, expenditure and tax reforms are the first three steps of the Michigan Turnaround Plan. We need to analyze the details of the Governor’s proposals, but are pleased she has proposed expenditure reforms. While the Governor’s proposals represent a meaningful step in the right direction, they don’t go far enough to put the State on a stable long-term financial footing, but continue to rely on Federal stimulus funding that is likely to evaporate by next year.
Click here to read the rest of the statement.
A copy of the budget can be found at: www.michigan.gov/budget
We released the following statement today:
We are encouraged that all three state leaders recognize the need to address many of the reforms identified in the Michigan Turnaround Plan and are coming forward with meaningful proposals for putting Michigan on the right economic track. Business Leaders for Michigan strongly believes the time to act is now and that we can’t afford to put off advancing a holistic strategy to reform the State’s finances and start creating jobs. We are committed to working with our state’s leaders, as well as other organizations with similar interests, to encourage agreement on a holistic strategy. Let’s bring together the best proposals advanced by these leaders and move Michigan forward.
Older Posts »