Senate Cuts Legislator Pay

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On March 26th, the Senate took bold and decisive action by passing Senate Concurrent Resolution 11 to cut the salaries, supplemental salaries and expense allowances of members of the legislature, the governor, lieutenant governor, attorney general and the secretary of state by 10 percent. 

 

This action on the part of the Senate represents one more step toward reducing the size and scope of state government and creating an environment that fosters growth and prosperity.

 

At the start of the 95th Session of the Legislature, I pledged to the citizens of Michigan that the Senate Republican Caucus would repeal the Michigan Business Tax surcharge, bring property taxes in line with home values and pass legislation to stimulate our state’s stagnant housing market.  I am proud to report that the Senate Republicans have accomplished our goals.

 

Our first order of business was to repeal the Michigan Business Tax Surcharge with the introduction and passage of Senate Bill 1.  Michigan businesses are the backbone of our economy.  In order to reduce unemployment, revitalize our housing market, and stop the exodus of talented people from our state, we must attract and support job providers. 

 

For too long now our job providers have suffered under an overly burdensome business tax.  We have already seen growth in industries as a result of targeted tax incentives; imagine the growth we could see in all sectors of the economy when we reduce taxes across the board.

 

I have heard the outcry from citizens across our state regarding their tax burden, specifically property taxes.  That is why the Senate passed Senate Joint Resolution H to place a constitutional amendment before the voters that would bring property taxes in line with home values. 

 

Additionally, in order to stimulate our housing market, the Senate passed legislation to increase the Homestead Property Tax Credit by $1,000 and raise the income threshold by $10,000.  The Senate also passed Senate Bill 346 to create a refundable income tax credit equal to 10 percent of the purchase price of the home or $10,000, whichever is less, for Michigan taxpayers who purchase a home by January 1, 2011.

 

As responsible legislators it is our duty to respond to the needs of our constituency.  Senate Republicans are prepared to create a more efficient and effective government that serves the needs of the people and puts Michigan on the road toward the economic growth.  I look forward to the House taking action on these bills in the coming weeks.



 

 

Special Election in the 19th District

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We mark the one month anniversary of the vacancy of the 19th District Senate seat. That seat remains open, and I know that for those of us who sit inside the Senate Chamber, it is easy to forget the fact that a chair remains empty, but I assure you that the citizens living in District 19 have not forgotten.

 

In fact, I received a resolution from the Battle Creek Commission. Deidre Laser, the clerk of that commission, sent me a resolution and sent the Senate the resolution asking that the seat be filled.

 

During these very tough economic times, it is unacceptable for people to be without representation, especially in Calhoun and Jackson counties.  It will be months before they have a representative in the Senate.  People are hurting and need assistance. The unemployed need assistance, and they need an advocate in Lansing who can be there for them during these difficult times. 

 

It is our constitutional duty to represent each and every citizen, not just in crafting legislation, but assisting them as elected members of government.  I will tell you as the representative from the 12th District in Oakland County, I receive thousands of e-mails, phone calls, snail mail, and all different sorts of correspondences every day from constituents who are in desperate need of assistance from their government.  I am proud to say that my office is very effective in communicating with those constituents.  My staff and I work with all levels of government, and my colleagues from all over this state, to resolve the problems that are affecting my constituents. 

 

In the past months, there has been an uptick in the calls coming from parents who, frankly, are embarrassed by their situation, but they have to provide for their family. They are out of work. They need jobs and they need assistance, and that is what government is all about–finding ways to help with the assistance that is due to them.

 

I have homeowners call whose property taxes are skyrocketing while the value of their home declines, or worse yet, those who are about to lose their homes and call their elected officials looking for help.

 

I also have parents who call the office regarding child care issues and child support.  It is a common call, and we it is our responsibility to be there for all of those calls.

 

But who is there to answer the calls for Calhoun and Jackson counties?  Who is watching over the 19th District? What will happen when it comes time to submit plans for federal stimulus funds? Will Calhoun and Jackson have an advocate with the Governor when the time comes to spread the wealth that she has been talking about? Who is compiling that list? Who is taking the calls, and who is prioritizing their needs? These are the questions that are begging to be asked.

 

In that area, one of our largest employers, Kellogg’s, is without a representative in the Senate. There are hundreds of thousands of businesses, small to large, who are not represented right now in the Senate.

 

It is unacceptable, and I think it is about time that we set a date to get that seat filled.  If the concern about setting the date has to do with the costs, then let’s hold this election in May with the school districts.  Every school district in that area has elections scheduled for this spring.  We can piggyback on that.  Let’s get it done as soon as possible and fill that vacancy.  I call upon the Governor to use her constitutional powers to set the date.

The following is a transcript of my Republican response to Gov. Jennifer M. Granholm’s State of the State address.

Economy, State Budget, Taxes No Comments

Good evening, my name is Mike Bishop and I have the honor of serving as your majority leader in the Michigan Senate.

Thank you for this opportunity to offer the Republican perspective on the state of our state.

I’d like to begin with the premise that regardless of political affiliation, Republican or Democrat, we all want what’s best for our state, and we are all committed to working together at a time when our state needs strong leadership.

Michiganders are resilient, our people and their work ethic are tougher and stronger, and we’re not afraid to stare down adversity and meet our challenges head on.

Each and every one of us has felt the awful effects of this economy and all of us are ready to step up and do whatever it takes to turn this state around.

I pledge to you that the Republican-led Senate will embrace that spirit and work with the governor and our counterparts in the House to deliver a better Michigan.

As you heard tonight, the governor’s presentation included her ideas on how to use federal funds to improve our state and its infrastructure.

While we welcome an open dialogue on ideas to turn this economy around, make no mistake about it, a temporary infusion of federal tax dollars is not and will never be the antidote for what ails our state in the long run.  It’s not rocket science.  You can’t increase spending and debt and somehow hope to resolve a serious budget crisis.

We must have a plan, and the resolve to implement that plan.

This is why Senate Republicans will be unveiling a bold agenda, starting with a 3 step plan that we will implement in the next 45 days.  Our plan provides instant stimulus to help Fix Michigan.

This plan does not concentrate on the spending of tax dollars to jumpstart our economy.  Rather, it incentivizes job providers – those who have been here for years and call Michigan home and also those job providers looking for a home.

Now, the first step of the plan is simple and straightforward — the House must follow the Senate’s lead and pass Senate Bill 1.  Repeal the 22 percent surcharge on our state’s business tax!

We simply cannot ignore the damage that the business surcharge is doing to our state’s job providers.

Even the governor must acknowledge that when the Legislature passes tax incentives, businesses thrive and jobs are created.

General Motors, for example, has already taken advantage of a new law passed by the Legislature in December that gives Michigan a competitive leg-up to build batteries for hybrid and electric cars.  This is public policy that helps us grow this innovative industry, right here in Michigan!

The film industry has flocked to our state to make movies because of recently passed tax credits that dramatically reduce costs for production here in Michigan.  In fact, just today Motown Motion Pictures Studio announced it will create 3,500 jobs right here in Pontiac, Michigan.

Hemlock Semiconductor Corporation will be investing in a $1 billion expansion of a Saginaw County manufacturing complex, adding 300 full time positions.

These are a few examples of success stories that prove tax cuts work, and are an effective way to create jobs and attract businesses to Michigan.

Just think if we cut business taxes across the board and created a competitive business environment for all Michigan job providers - can you imagine the growth we would see in all sectors of our state’s economy?

The second part of our plan calls for the Senate to pass legislation to bring property taxes in line with home values.  You will no longer have to watch your property tax bill increase while the value of your home plummets.  This is an effective and important step in keeping Michigan families in their homes.

Third, Senate Republicans will pass a comprehensive plan to reinvigorate our stagnant housing market by providing a tax credit for purchases of new homes.

We know a thriving housing market can spur a turnaround in consumer confidence and revitalize the American dream.

These are common-sense fixes that will help provide immediate relief to Michigan families and job providers.  It’s a great step in the right direction, and we understand it’s just part of the solution.

Senate Republicans recognize that it will take more than tax cuts to see us through these challenging times.  Government must make real changes and reforms to spending before we can begin to see a turnaround in this budget crisis.

This is why I have asked Senator Ron Jelinek, our Senate Appropriations chairman, to review each item in our state budget, department by department, and find savings.  It’s a difficult task given the many needs of our people, but it simply must be done.

In order for government to serve the overwhelming needs of the people, we must first be certain that state resources are well-directed and used efficiently.
When a job provider who wants to start a new business or construction on a new project can’t get a permit in a fast and timely manner, government has failed.

When a worker has to wait weeks upon weeks and stand in line out in the cold, or wait on a phone line for countless hours for unemployment benefits, government has absolutely failed.

When tax dollars are wasted because the government thinks it can do a better job of providing a service than the private sector, government has failed.

Senate Republicans will work diligently to make sure government provides Michigan residents with critical services — efficiently and effectively.

If you are trying to start a new business, or expand an existing one, it’s our goal to keep government out of your way.

If you’re out of work and need access to unemployment benefits, we’ll make sure someone is there to answer the phone, and assist you through this very difficult time.

The less taxpayer dollars are wasted on unnecessary administrative costs, underperforming programs and a bloated bureaucracy, the more those dollars can be wisely directed to the programs needed by our citizens — like better schools for our children, increased access to affordable health care, and services to the poor and aging.

With adversity comes opportunity.  Our state is facing massive challenges – unlike any we have ever seen. It’s time for our leaders to rise up, take the reins and make the tough decisions that will lead us back to prosperity.

It’s time for us to work together to Fix Michigan. We owe it to the people of this great state — to our taxpaying citizens, to our job providers, and most importantly, we owe it to our children.

Thank you for this opportunity to speak with you tonight and for the honor of serving you.

God bless you, your families and our great state of Michigan.

Senate Repeals MBT Surcharge

Economy, Taxes 3 Comments

I want to congratulate the chamber today for a lively debate on a very important issue regarding Michigan’s future. We have had several of our members stand and give testimonials on this issue and join in the pros and cons of what we are discussing today.

We can talk all day long about the history. I have heard several members get up and talk about the history of how we got the MBT and how we got the surcharge. We can spend all day talking about whose theory is right and whose recollection of history is the best, but the reality is we do have the MBT and we do have the surcharge and on that we can all agree.

The question really is, now that we have it, and now that we know how it is being implemented, now that we know how it is being interpreted, and now that we know how it is impacting the business community in our state and our job providers in this state, it is important that we do what is our responsibility and address those issue that have been raised.

The Senate put together a task force, and traveled across the state, talking to business owners.  Senators from across our great state took it upon themselves to talk to job providers directly and talk to individuals and taxpayers to understand how this tax impacts them. We gathered up a number of recommendations and put them together and brought them before the Legislature. Many of those recommendations have been adopted already. Others are still waiting.

Today we are talking about probably the biggest recommendation of that group, which is to roll back and to terminate the surcharge. The surcharge was one of those interesting elements that came up after the MBT that was never originally intended to be a part of the MBT.  It was an unfortunate result of the disdain for the Governor’s service tax.

Now that we know how this is impacting our businesses and our job providers, we can’t simply continue to agree that it is a problem and point the finger at the problem and then proceed to blame each other for why it’s there in the first place. Our responsibility now is to come up with solutions and ideas.

This is not a Republican or Democrat issue. This is an issue for all of us Michiganders, as all of us have job providers in our districts, and all of us who join in our concern about the future of our state. All those who talked about foreclosure today and the many pressures that are on individuals in our state and on job providers, today is one of those days that we are engaging the dialogue which represents a legitimate solution—relief to the many people who need it in this state.

It is our responsibility to have an educated discussion, and I think we have. Now it is time to act. Let’s stop talking about it and let’s start acting. Today we have an opportunity to vote on the surcharge. You heard the testimonials and the egregious impact this is having on job providers and the disparate impact it is having on certain sectors of our economy. Let’s stop pointing fingers of who is responsible for the MBT and the surcharge.  Let’s start talking about solutions.

Here is a solution: Yes, it will take us out of our comfort zone. It will undoubtedly put a hole in the budget, add to the budget, there is no question about it. But that is exactly why Senator Jelinek and the Appropriations Committee are meeting right now to discuss solutions on ways that we can reform government.

Taxpayers and job providers have changed their lives and are biting the bullet right now because of what is happening in this economy. It is not too much to ask for state government to do the same. This is a small step in that direction. If anybody believes that we are not going to be taken out of our comfort zone in the next couple of years as a result of this economy, they are flat out wrong, and they have their head in the sand. You are in complete denial.

We have been whistling the same tune for years, and history has got us caught in a rut, and we are afraid of change. Now, more than ever, we have to embrace that change. Government has got to change in a way that we have never seen—a transformational change, just like businesses are doing right now. Job providers and taxpayers have got to change their family budgets. Yes, we will be taken out of our comfort zone, but it is a step that we have to take. If we don’t do it today, we will have to do it tomorrow. And I can guarantee you that if we wait until tomorrow, it is going to be far worse than it is today.

So let’s step up on behalf of the people we represent and do our job. Let’s take ourselves out of the comfort zone, and be bold in our leadership. Today is a good day. It is a solution, and as time goes on, I hope that we can come together and find more solutions. It is not something that I like to do; it is something that we have to do.

 

My letter to Congress regarding Federal bailout money

Economy, State Budget No Comments

January 28, 2009

The Honorable Nancy Pelosi
Speaker of the House
United States House of Representatives
235 Cannon House Office Building
Washington, DC  20515-0508
The Honorable Harry Reid
Senate Majority Leader
United States Senate
522 Hart Senate Office Building
Washington, DC  20510

Dear Speaker Pelosi and Majority Leader Reid:

Accountability is the new watchword as lawmakers around the country grapple with complex financial issues in 2009.  All elected officials must insist that taxpayer dollars from any federally-approved, temporary stimulus package are spent wisely.

Requiring transparency and accountability is vital as the executive and legislative branches contemplate one of the most sweeping economic proposals in American history.
As eager states rush to receive the anticipated federal aid, there must be safeguards.  Without careful oversight by appropriations committees at the state level, the money will just be used as a one-time, quick fix that tries to mask long-term structural shortfalls and delay real reform. 

Congress recently required the Big Three automakers to present a comprehensive business strategy that includes specifics on across-the-board company restructuring.  Federal lawmakers should ask for the same details from states that seek billions in special relief from Washington.

Before a single dime is given to any state government, Congress must demand more answers from governors.  At least 44 states face budget shortfalls.  None of them, including Michigan, should receive federal taxpayer dollars unless they adjust the spending practices and structural problems that drove them to require such assistance.  This is especially important considering the stimulus package will only last for two years.

Governors must be better managers or Congress will face repeated federal relief requests for many years to come.  Unless the states grasp reality, and make some tough cuts, they will soon find their budget blueprints are unsustainable after the temporary federal rescue quickly ends. 

That is why the funds allocated from the temporary relief package should go through the full appropriations process in each state with the proper committees and subcommittees providing valuable oversight and ensuring accountability.

If Congress spends taxpayer money without requiring spending reforms, it will be a blatant breach of members’ fiduciary duty.

Our federal government should not support the states’ continued addiction to runaway spending.  A financial stimulus that prompts infrastructure upgrades and other building projects could provide many jobs to ailing state economies.  We should not squander this temporary source of funding on a patch to overgrown state governments.

Here in Michigan, we know what it means to face a financial crisis after several years of rising unemployment and addressing significant budget shortfalls in 2007 and 2008.  Michigan is among those in line for the temporary relief.  But putting a federal Band-Aid on our budget won’t solve Michigan’s structural budget deficit or overspending problem.  And a one-time federal economic stimulus certainly won’t cover Michigan’s gap for fiscal year 2010 budget and beyond. 

Now is the wrong time for any governor to introduce new programs that require more spending.  The time is right to enact budget reforms and cuts instead of pushing the budget problem down the road with an even bigger debt for future generations to repay.

Please consider this perspective as you debate one of the most crucial issues to ever face Congress.

Sincerely,

Michael D. Bishop
Senate Majority Leader
12th District

cc:      The Honorable Carl Levin
    The Honorable Debbie Stabenow
    The Honorable Dave Camp
    The Honorable John Conyers, Jr.
    The Honorable John Dingell
    The Honorable Vernon Ehlers
    The Honorable Peter Hoekstra
    The Honorable Dale Kildee
    The Honorable Carolyn Cheeks Kilpatrick
    The Honorable Sander Levin
    The Honorable Thaddeus McCotter
    The Honorable Candice Miller
    The Honorable Gary Peters
    The Honorable Mike Rogers
    The Honorable Mark Schauer

 

Thoughts on Federal Dollars for States

Economy No Comments

Congress has required the Big Three auto manufacturers to present a comprehensive business response strategy that includes specifics on across-the-board company restructuring. We should ask for the very same details from states that are seeking more than $136 billion in federal relief money. The President-Elect has indicated the relief package could climb as high as $1 billion.

Before House Speaker Nancy Pelosi and Senator Harry Reid give a single dime to state governments, they should demand governors who accept federal relief provide a detailed “debt reduction” plan including a timeline.

Forty-three states are facing shortfalls. None of the states, including Michigan, should receive federal taxpayer dollars unless they adjust the spending practices and structural problems that drove them to require federal assistance in the first place. Governors must better manage the institution of government, or we are doomed to a fate of repeated federal relief packages for years to come.

If Congress spends taxpayer money without requiring some spending reforms, it will be a blatant breach of members’ fiduciary duty. Congress has a great opportunity to offer assistance to states in need while at the same time calling on states to implement much-needed structural and spending reforms.

Our federal government should not support the states’ continued addiction to runaway spending. If the American taxpayers’ money is used to provide financial relief to states, Congress should also require real reforms through efficient management practices by the state governors. Much good could come of a financial stimulus by way of infrastructure upgrades and other building projects that could provide many jobs to an ailing state economy. We should not squander this stimulus money on a patch to an overgrown government.

Here in Michigan, we know what it means to face a financial crisis after several years of rising unemployment and having to address a significant budget shortfall in 2007 and again in 2008. Early forecasts show our state budget for the current year will be nearly $400 million in the red before book closing. But putting a federal Band-Aid on our budget won’t patch Michigan’s structural budget deficit or overspending problem. And a federal economic stimulus certainly won’t cover Michigan’s gap for FY 2010 budget, which is anticipated to escalate to over $1 billion.

This looming budget crisis will be difficult to resolve, but it must be a top priority. We have real deficits before us today that require long-term solutions. We are calling on the governor to show some leadership in this regard, and provide a list of specific areas to make reductions and streamline government. To assume that Michigan’s economic woes will be resolved by the federal government is negligent. It is incumbent upon the leadership of this state to resolve Michigan’s budget deficit without relying upon a handout from Congress. I look forward to the Governor announcing a comprehensive plan for savings and reform in her February state of the state address.

Now is the wrong time for the governor or any elected official to introduce new programs that require more spending. The time is right, however, for the governor to present a comprehensive list of budget reforms and for us to enact cuts now, instead of simply pushing the budget problem down the road for the next administration.

Happy New Year

Economy 2 Comments

As we look forward to the New Year and a new legislative session, I find myself chanting the same word: “Reform, Reform, Reform.”

In 2007, we stared down the barrel of a gun looking at a nearly $1 billion budget deficit, and the resounding call from the Democrats was “TAXES!, TAXES!, TAXES!” 

 

Taxes in the form of an increase in the state income tax, taxes in the form of a two percent service tax, taxes in the form of a revenue neutral Michigan Business Tax. 

 

It is now two years later and conservative estimates place our impending budget deficit in the hundreds of millions, realistically, we are probably approaching another $1 billion hole.  History has proven that taxes are not the answer. 

 

The Democrats’ solution to the state’s 2007 deficit was a band aid fix to a problem that has once again reared its ugly head and I have news for the House Leadership and the Governor, no more blood can be squeezed from the turnip.  The taxpayers of Michigan have been bled dry. 

 

Michigan has seen a steady decline in jobs and homeownership and a steady increase in the number of individuals and families applying for social assistance, or leaving our state altogether. 

 

For the month of November, Michigan reported nearly 10 percent unemployment and we have been consistently listed in the top 10 of all states for home foreclosures

 

Every time I meet with a business owner, or a CEO, or a constituent, and every time I review new statistics on the state of our economy, I come back to the same conclusion: we need fundamental change in Michigan in order to put our state on the road to prosperity once again.

 

I am a firm believer in smaller, more efficient government.  I have supported measures to cut taxes, rein in spending and even sponsored legislation to create a part-time legislature.  I have done all of this because I truly believe that when you lower taxes, you attract businesses and you create jobs. 

 

As we begin the 95th Legislative Session, Senate Republicans will continue to challenge House Leadership and this Administration to see the light.

 

The key to the renewed success of Michigan’s economy is reform. 

 

Part of that reform includes sweeping changes to the state tax policy by lowering rates across the board for all businesses.  But it’s more than just tax relief – we must also control our spending. 

 

Chances are, the Democratic leadership will continue to baulk at our efforts, but if we do not tighten the purse strings now, there will be a resounding call for tax increases in the next two years just to accommodate the state’s out-of-control spending. 

 

So I think it’s time for the people to step forward to start a new movement to transform Michigan. 

 

We need to ask questions like:

 

·         Why is Michigan one of only four states that spends more on corrections than it does on higher education? 

·         Why does it cost 50 percent more to house a prisoner in Michigan than it does in Indiana? 

·         Why are our teachers the third highest paid in the country, yet our school districts are plagued by poor performance?

·         Why are nearly half of the students graduating from Michigan’s universities taking their degrees to other states?

 

In the coming weeks and months, Senate Republicans will be reintroducing legislation to reform our schools and prisons, repeal the MBT surcharge, and reform state government. 

 

Pumping more taxpayer dollars into a broken system does not fix the problem. 

 

Instead of doing just enough to put off crisis for one more fiscal year, our focus must be on identifying the root causes of the problems and coming up with long-term, lasting solutions.

 

I am committed to spending my final two years in the Legislature working to leave state government and Michigan in a better condition than I found them and I know, together, we can bring commonsense solutions to the our great state.

 

 

 

A Call to Action

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One week from today, citizens across this country will stand in line at the polls to participate in the most sacred privilege afforded to the citizens of a democratic society: the opportunity to vote.

 

On November 4th, not only could we see a Democrat elected President, but also a change in Congressional seats and Democratic gains in our state House.  Conceivably, this election could set into motion the gains necessary for a complete Democratic stronghold on our federal and state governments.  That is why it is imperative that Republicans band together to support our candidates.

 

In one week, we could see our country shift from one of civil liberty and personal freedoms, to one of wealth redistribution and socialism.  

 

So I am asking for your help.  It is time to assert our values as Republicans.  Your vote could be the difference between the pro-family, pro-jobs, fiscally conservative, commonsense, country first Republican leadership we need and ushering in the pro-choice, tax and spend, socialist, liberal agenda of the Democrats.

 

For every Democrat who gains a seat in the state House, in Congress, or in the White House, I can guarantee you that your taxes will increase, your personal freedoms will diminish, and the growth and prosperity of our state and country will be even further stunted.

 

Your one vote is critical to the success of our candidates.  To put it in perspective, the Republican Party retained its majority position in the Michigan Senate by just over 1200 votes.  Elections are not determined by pollsters and media outlets, but by citizens willing to engage in the electoral process.

 

This is a call to action.  We have seven days left to reach our goal, I encourage each and every citizen to stand up in support of our candidates and deliver a Republican Party victory on November 4th.

 

For more information about your specific ballot and voting location, please visit the Secretary of State’s website at: www.michigan.gov/vote.

Surcharge Repealed!

Uncategorized No Comments

Today, the Senate passed legislation to phase out the burdensome 21.99 percent Michigan Business Tax surcharge.  This represents a victory for Michigan businesses that have suffered under the strain of this onerous levy since its passage last year.

 

While the MBT was intended as a revenue-neutral replacement to the Single Business Tax, it is clear that Michigan businesses have struggled under a tax burden that is far too high.  Senate Republicans believe that revenue neutral is not good enough.

 

Our priority in Michigan must be to create an attractive business environment in which companies want to expand and locate.  Retention and support of our current businesses, as well as the attraction of new enterprise, is crucial to our state’s economic success and sustainability.  As responsible legislators, it is our duty to support our state’s economy, not to tax it to death.

 

The process for revisiting the MBT was spearheaded by the Senate Republicans with the formation of the MBT Impact Assessment Subcommittee.  The subcommittee spent the better part of a month gathering testimony from business owners throughout the state about how the MBT affected their companies.  From that testimony, it was clear that the surcharge discouraged business owners from expanding their operations, leading to fewer jobs and less growth.   

 

As our nation struggles to resolve the financial crisis on Wall Street, it is imperative that we at the state level do all within our power to boost business in Michigan.  The repeal of the surcharge will certainly reduce revenue to state government, but the cost of maintaining this fee is too great a burden for our small and medium-sized businesses to shoulder.

 

 

 

Hypocrisy in Action

State Budget No Comments

Last week, the Senate voted on Senate Joint Resolution E (SJR E) which would have amended the Constitution to limit the Governor’s annual budget recommendations to a percentage of current revenue estimates.

When introduced, SJR included bipartisan support, with 8 Democrats and 18 Republicans signed on as co-sponsors.  Unfortunately, in an all-too-familiar move, when it came time to vote, Democrats withdrew their support and the measure fell short of the required two-thirds majority vote by a count of 20 to 17.

Under the Resolution, the Governor’s appropriation recommendations would be limited to 96 percent of the revenue established by the January consensus revenue estimate, which occurs one moth prior to the Governor making his/her budget recommendation to the Legislature. 

Revenues in excess of the 96 percent limit would be deposited in a Budget Stabilization Fund and would require a two-thirds majority vote of the Legislature before funds could be withdrawn.  The changes were to be effective beginning in Fiscal Year 2012.

When it came down to the wire, instead of supporting responsible state government policy by reining in spending and asserting that we can no longer live beyond our means, Senate Democrats instead set aside integrity and statesmanship in order to preserve the tax and spend trend in our state.

While families across Michigan are losing their jobs and their homes, Democrats felt it was more important to keep their options for reaching into the wallets and bank accounts of our citizens open in order to fund increases in spending through higher taxes.

I have said it before and I will reiterate that Michigan cannot tax its way into prosperity. 

Senate Republicans know that our constituents are suffering.  We know that families are learning to live on less and less. 

We presented a formula for responsible spending and our colleagues on the other side of the aisle signed on when SJR E was introduced, but responded with a resounding “NO” when it really mattered.

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