Tagged: budget deficit

Congressman Fred Upton is looking for your ideas on how to reduce the federal budget deficit.

Upton is one of twelve lawmakers selected to serve on a special Congressional committee that will try to come up with a compromise on long-term spending.

Seven of the twelve lawmakers on the special committee will have to agree on a proposal in order to get it to the full Congress for approval. Last month, Upton called it “an enormous task.”

Michigan Senator Carl Levin wants all sides to give up trying to tie increasing the federal debt ceiling to a major cut in federal spending. The budget talks have stalled as President Obama and Congressional Republicans have been unable to agree on closing tax loopholes.

Levin says tying budget cuts to increasing the debt ceiling has been a bad idea.  

“Frankly never should have been combined.  We have no choice but to raise the debt ceiling.  We ought to reduce the deficit.  And we will.   But, whether we can do that in time to avoid a real calamity here which will occur if out debt ceiling is not raised is just anybody’s guess.”  

Congress has until August 2nd to agree to increase the federal government’s debt ceiling. After that, the government could possibly risk going into default.

Grand Rapids Public Schools is facing a $22 million dollar budget deficit for next school year. That’s the largest shortfall Michigan’s third biggest school district has faced.

The plan to close the gap includes eliminating close to 140 positions and use $5 million in savings. Despite that, no one showed up to speak at a public hearing on the school budget Thursday night.

Governor Rick Snyder says he may want to bank the money from an unexpected improvement in tax collections – if the windfall exists.

Early revenue projections suggest Michigan may collect $500 million more than anticipated.

But Governor Snyder says he’s not ready to count that money as part of his budget plans.

He says the state may be better off putting it into savings.

“I’m bullish that we’re on a positive economic path, but to say we’re going to see just an upward curve without a few bumps, I would be careful about speculating that given the challenge of gasoline prices and such.”

Democrats want to use any windfall to scale back proposed cuts to schools. The next official revenue estimate comes in mid-May.

The House and Senate are continuing to work this week on budget proposals with an eye toward finishing before June first.

The Detroit Public School district received a $231 million dollar loan from the state. 

The loan will help the district with "employee payroll and vendor payments," according to Steve Wasko, a spokesman for the district. He says the loan won't help with any of the district's long term financial problems:

1. $327 million budget deficit.
2. $161 million dollars in budget cuts if Governor Rick Snyder's proposed education cuts go through.

Michigan Radio's Sarah Cwiek filed a story for NPR about the district's $327 million budget deficit. Here's an excerpt:

With Detroit's public school district facing a $327 million budget deficit, the state-appointed Emergency Financial Manager has proposed closing half the district's schools and putting up to 60 kids in a classroom.

Robert Bobb admits that his deficit elimination plan could be disastrous for students — he calls it "draconian" — but he may have no choice but to implement it.

In January, he gave the plan to the state of Michigan, warning that it's the only way for Detroit Public Schools to "cut its way out" of its deficit. The state's department of education says that's exactly what Bobb should do.

"We're working through some very difficult and challenging budget situations," Bobb said last week. He backed away somewhat from one of the plan's most staggering provisions: 60 kids in some classrooms. But he says class sizes will go up as the district closes about half its schools.

The plan also calls for replacing individual school principals with regional ones, and cutting all general bus service.

Lots of Michigan districts take out short term loans in August to help pay employees and vendors because districts' fiscal year is out of sync with the state’s fiscal year. The Detroit Public Schools district borrows twice a year for cash flow purposes - in August and March.

Governor Rick Snyder (and Budget Director John Nixon) presented the 2011 budget to a joint session of the Michigan legislature yesterday.

Michigan Radio's Jennifer White hosted a call-in show, “Funding Our State,” to take a look at the state of the state’s budget, which is currently facing a 1.8 billion dollar budget deficit for the new fiscal year that begins October 1st.

To find out what this budget means for educators, for finances, for business, and for you, click the link below.