State Budget Update, “It’s finally making cents”

By Chuck Moss
Appropriations Chair State Representative

So what’s going on in Lansing? The big news is that it’s summer and we’re not working on our budget. How come? We finished it two months ago. The 2011-2012 state budget was done before June 1st, balanced, and cut around $1.2 billion. Considering that the last four years’ budgets, two went right up to the September 30th deadline and two went over into government shutdown, this year we got the job done early.

Not just done early, but done right. We held the line on spending and actually made cuts. These cuts were certainly not universally popular. However, we began the tough road back to fiscal solvency. Michigan began putting money aside to pay for legacy costs, and to build back up our rainy day fund balance.  We also tackled the years-ongoing structural deficit that led to mid-year shortfalls and unexpected mid-year program cuts. While we were at it, we adopted a two- year budget.

The budget was not without controversy. K-12 public school administrators and collective bargaining units were hopping mad about opening the School Aid Fund to higher education. But given the fact that our General Fund consistently helped out School Aid when GF was flush and SAF low, it seemed only fair to reverse the complement when the reverse situation occurred–particularly when Michigan has 11% fewer school kids than in 2004.

Speaking of K-12, the Governor has proposed changes in our current public school delivery systems for education. From districts like Detroit, which are on the verge of collapse, to schools less dire, but still under educating their kids, Michigan has too many students not getting the education they need. With proposed reforms targeting teacher performance, administrator performance, and financial management, we’re working on giving every kid a basic education, wherever they live.

Finally we’re tackling the post-employment legacy costs in state government. Lansing owes too much in promises, and that amount must be capped and funded. Public servants shouldn’t demand higher taxes to fund benefits more generous than those the average taxpayer gets.  In the legislature, we’ve taken a 10% wage cut, cut our benefits, accepted an 80/20 co-pay split, and have no pension. With so many folks facing hard times and tough decisions, it’s only fair we cut ourselves first.

There’s much more, and in September we’ll have a whole new agenda. For the moment, I’m proud to be working in a legislature that is at last facing Michigan’s challenges squarely and setting the stage for a brighter future.