Americans for Prosperity-Michigan

Detroit News: "Time is running out to adopt a balanced budget"

Editorial: Time is running out to adopt balanced budget
Sept. 1, 2009

State workers have been put on notice they’ll be laid off at the end of the month if lawmakers and Gov. Jennifer Granholm can’t come to an agreement on a new budget. That only adds to growing fears our government will shut down, as it did for a few early-morning hours in 2007, if the 2010 budget hasn’t been finalized by Oct. 1.

Weeks of closed-door talks between Granholm and legislative leaders apparently having accomplished little, it’s time for Democrats and the governor to ante up. If they hate the Senate-passed plan that would slash state spending and programs by $1.2 billion, they should put out their own, alternate proposals for all of us to see.

The governor, who is constitutionally required to present a balanced budget plan, needs to update the one she presented in February, when the problem was thought to be $1 billion smaller. The House Democratic majority, presumably in favor of more modest cuts than are proposed by the Senate, should show us how they’d resolve what’s now projected as a $2.7 billion revenue shortfall.

They’re faithfully sticking to an agreement not to publicly reveal what they’re talking about privately. But that leads to suspicion they really have no plan beyond tax increase trial balloons.

While private talks dragged on, members of the Senate last week spent time debating Granholm’s decision to eliminate the Department of History, Arts and Libraries by dispersing its functions among other government departments. If lawmakers can’t even get past this cut, Granholm ordered three months ago and which fills a miniscule $2 million of the yawning budget chasm, what are the chances they’ll fix the $2.7 billion problem on time?

Most public school districts had to adopt new budgets two months ago and many have started a new school year without knowing for sure how much money they’ll get. Cities, counties and the 15 public universities need to know whether their allotments will be slashed. College students are attending classes and paying tuition without knowing whether they’ll get the state-sponsored scholarships they were promised.

We’ve said there should be no new taxes without government restructuring. Pay and hiring freezes, audits to make sure all government workers are essential and a hard look at benefit reforms are among the measures that seem warranted considering government’s dire straits.

Policymakers must realize that automakers can no longer lead us out of severe recession.

Unfortunately, it already may be too late for badly-needed government reforms before this budget is due. Restructuring must occur, but hard cuts to avoid overuse of federal stimulus dollars may be the only realistic option at this point.