Tagged: deficit

President Obama and leaders in Congress will need to agree on a way to reduce the federal budget deficit to avoid automatic, sweeping cuts in January. There’s concern that the cuts could have a damaging effect on the economy and military programs.

The cuts are looming because Congress authorized the federal government to borrow more money last summer. In exchange, a bi-partisan super committee (Michigan Congressmen Dave Camp and Fred Upton served on the committee) was supposed to come up with a plan to cut the federal deficit. But that committee failed.

Congressman Justin Amash says, yeah, he called it.

"…That they would raise the debt ceiling, borrow more and then later on say ‘oh we don’t want to do these cuts’ and that’s exactly what’s happening,” Amash said.

Amash, who represents Michigan’s 3rddistrict, was the only Republican from Michigan to vote against what he says was a “phony plan” to begin with.

The Lansing city council is scheduled to vote on next year's city budget this evening.   Declining property values and rising health care costs are forcing deep spending cuts. 

 City leaders hope an estimated 4 million dollars in state revenue sharing will allow a reduction in the number of possible police and fire fighter layoffs.

Jerry Ambrose is Lansing's city finance director.    He says the Mayor's office is also seeking 3 million dollars in union contract concessions, mainly in health care coverage. 

Budget hearings continue today in Detroit. The Detroit City Council’s budget, finance and audit standing committee will discuss the city's Finance Department budget later this afternoon, the Associated Press reports. From the AP:

The Detroit City Council is continuing hearings on Mayor Dave Bing's proposed 2011-12 budget…

Bing presented his proposed $3.1 billion budget to the council last month. He says the city faces a $155 million deficit that could swell in several years unless there are more cuts, and payments to two city pensions and health care expenses are reduced.

Bing met Monday with union leadership where he detailed needed concessions to help cut into the deficit.

The council is expected to make recommendations or changes to Bing's proposal. The new fiscal year begins July 1.

From the Associated Press:

Commissioners in Bay City are bracing for another year in the red heading toward Monday's presentation of the proposed 2011-12 city budget. The Bay City Times reports a deficit similar to the $1.6 million faced this year is expected due to anticipated cuts in state funding.

The budget year begins July 1. Commission President Kathleen Newsham warns that the news is "going to be bad." City Manager Robert Belleman says no municipal layoffs are expected in the proposed budget and that money from a reserve fund will be used to cover a deficit.

Bay City registered $1.4 million in savings last year. Belleman says the city's revenue sharing from the state is down by at least a third.

Michigan lawmakers will be back at the state Capitol today after a two-week Spring break and it appears that their attention will turn to the state budget.

Budget-related subcommittees in both the House and Senate are scheduled to meet today.

The state faces a projected budget deficit of around $1.5 billion for the fiscal year that begins October 1st. Governor Rick Snyder says he wants lawmakers to finish the budget by May 31st.

Many lawmakers, however, say they don’t think the budget process will be finished before this summer.

Detroit Mayor Dave Bing will present his budget for the city later this morning. The Associated Press reports the budget will propose a five-year plan to wipe out the city's $150 million budget deficit. From the AP:

Tuesday morning's presentation is the first step in the city's budget approval process heading into the new fiscal year that starts July 1.

It follows Gov. Rick Snyder's signature last month on a state law that gives more power to state-appointed financial managers, letting them toss out union contracts to help balance the books of distressed communities and struggling school districts.

Bing has fought often with city unions over concessions designed to cut into the deficit.

A union protest of Bing's proposed 2011-12 budget is planned Tuesday's afternoon outside the Coleman A. Young Municipal Center.

Lansing Mayor, and former Michigan gubernatorial candidate, Virg Bernero delivers his city's 2012 budget to the Lansing City Council tonight. It's being reported this morning that Bernero will propose a budget that contains $20 million in cuts.

The Lansing State Journal reports:

In the run-up to Monday's formal budget presentation, Bernero's staffers have sent signals about the magnitude of possible cuts. Among the most notable: the potential closure of three fire stations and elimination of 60 positions in the Fire Department.

As the Lansing State Journal explains, Lansing, like many other cities and townships across the state, is, "caught between competing budget pressures. First is the drop off in revenue from local property taxes and from promised aid from the state government. City budgeters also have to cope with rising costs, particularly on pensions and on health care for workers and retirees alike."