Tagged: budget

Governor Rick Snyder says he wants to make government finances easier for taxpayers to understand. Snyder says having the public understand the state’s budget troubles is a critical part of solving the problem. Rick Pluta reports:

Governor Snyder recently told local officials his administration is developing a model for explaining the state budget that could be adopted by cities, townships, and villages.

Snyder is a retired computer company CEO and investor with a degree in accounting. He says the idea came to him while he was examining the document that explains how state government spends its money. 

"If you’ve tried to look at it, and I don’t know if you have… I’m an old CPA and there should be a warning label – not made for human consumption," Snyder said.

Snyder says he’d like state aid to local governments to be tied, in part, to how well they explain their finances to their citizens. Cuts to revenue sharing payments are expected to be part of addressing a budget deficit, but Snyder says he’d like to reward local governments that find ways to save money and innovate.

In the world of corporate business, bonuses, perks and cash incentives rule the day. They're used to drive productivity.

Governor Snyder, a former corporate president, is bringing that mentality to Lansing.

Now, he says he wants to reward local governments that find better, cheaper ways to provide services.

Rick Pluta, of the Michigan Public Radio Network, says Snyder's budget proposal will call for cash incentives that encourage cities and townships to innovate.

Rick filed this report saying the Governor's announcement was a small bit of welcome news to local officials bracing for more budget cuts from the state:

Governor Snyder outlined his idea at a drop-by with local government officials meeting in Lansing.

He says local governments provide most of the services that people use, and the state should reward the ones that find ways to consolidate, cut costs, and innovate:

"So it's really to create an environment to say, here's a positive incentive to be the very best...so people first and foremost in Michigan and then people around the country and the world will look at Michigan are going to look and say, these people have their act together, this is the place to be, this is the place to have your kids grow up and succeed."

The governor provided few details.

He says those will wait for his budget proposal next month, and a special address on government reform that he will deliver in March.

I was sifting through the many reports by Gongwer News Service.  Gongwer covers just about everything that happens in and around the Lansing capitol complex.  What caught my eye was an article entitled "State Estimates Tax Expenditures of $33.8 Billion for FY'11." 

I read through the Gongwer story which linked to a 111-page report by the Michigan Department of Treasury.

Senate Bill 1 has been introduced, and you can read it, in its entirety - here you go:

The Michigan business tax act, 2007 PA 36, MCL208.1101 to 208.1601, is repealed.

The bill was introduced by Senator Dave Hildenbrand and comes in advance of Governor Rick Snyder's State of the State address tonight.

Replacing the Michigan Business Tax was one of candidate Snyder's main promises to voters.

Laura Weber of the Michigan Public Radio Network filed a report on Senate Bill 1:

Senator Dave Hildenbrand...says his bill is more aggressive than a similar bill introduced by House Republicans, which only repeals part of the business tax:

"Well we wanted to send a strong message that we want to create a better business climate in this state so our job providers can provide jobs. It’s pretty clear, I think to all of us, that the Michigan Business Tax is an obstacle for employers to good create jobs, expand, for the ability for us to attract job providers to Michigan. So we’ve declared war on the Michigan Business Tax."

Governor Rick Snyder wants to replace the Michigan Business Tax with a flat tax on large businesses. Snyder is expected to talk more about his plans for economic development during his State of the State address tonight.

The money the state sends to local governments is called revenue sharing.  But "sharing" might not be quite the right word.  It’s actually a promise, a deal the state made with the towns we live in. 

Summer Minnick is with the Michigan Municipal League.  It represents the interests of the cities, villages and townships to state leaders.  She says decades ago, local governments gave up the power to charge their own sales tax to raise money.