Tagged: deficit

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."

Update 6:46 a.m.:

Governor Snyder has given a copy of his $45 billion budget plan to the Associated Press. The AP reports:

Rick Snyder is asking for "shared sacrifice" from everyone from senior citizens to state workers, public schools to city halls as he seeks to make up a huge budget gap with a massive budget overhaul.

Even before Snyder presented the plan to lawmakers Thursday, he was defending it. He says it would put the economically troubled state on sound financial footing.

It would cut spending for schools, universities and local governments while ending many personal tax breaks. It would eliminate before- and after-school programs, cut hundreds of state jobs and ask public employees for concessions.

6:30 a.m.:

Governor Rick Snyder will unveil his budget proposal today at 11 a.m. in Lansing. As the Associated Press reports, the proposal is expected to make, "sweeping cuts to spending and gets rid of billions of dollars in special tax exemptions, including those for seniors."

The state faces a projected $1.5 billion dollar budget deficit for the fiscal year that begins October 1st. 

Republican leaders in the state Legislature say they want to give Governor Rick Snyder time to roll out his entire budget proposal before passing judgment on pieces of it that have become public.

State Senate Majority Leader Randy Richardville says he’s been briefed on the entire budget proposal and is telling people to be patient.

“We’re a little premature making an evaluation of an overall big picture solution. I commend the governor for not being afraid to take on a tough issue and not being afraid to take on a tough issue, not being afraid to roll out a plan. But this is his day, this is his budget. It’s his time to throw out his plan."

The governor is expected to propose lifting the tax exemption on pensions as part of a plan that will also include repealing the Michigan Business Tax, but replacing only part of the revenue.

The governor will make his formal budget proposal to the Legislature this morning at 11 a.m.

Governor Rick Snyder's budget proposal for the fiscal year that begins October 1st will be released next Thursday, February 17th. The state currently faces a projected $1.8 billion budget deficit for the new fiscal year. Snyder says he plans to ask lawmakers to do away with billions in business tax exemptions, according to the Associated Press. The AP reports:

Snyder has said he plans to review tax credits to see which are worth keeping, but hadn't said how many would be eliminated.

Lt. Gov. Brian Calley told the Holland Chamber of Commerce on Tuesday that the administration is counting on $2 billion from such cuts.

Calley also says the budget proposal will be like an "atomic bomb" going off in Lansing, a comment that drew criticism from Snyder spokeswoman Sara Wurfel.

Wurfel said Wednesday that Calley's comments were an "extremely unfortunate choice of words."

She also denied Calley's claim that Snyder plans to present an all-cuts budget.

Republican state Senator Roger Kahn introduced a bill yesterday that would eliminate the state's Earned Income Tax Credit. The tax credit currently goes to low-income working people in Michigan. The Associated Press reports:

He (Kahn) says the credit is expected to cost the state roughly $370 million in the upcoming fiscal year and the state can't afford it. Many House Republicans also support eliminating the tax credit. The tax credit is staunchly defended by groups including the Michigan League for Human Services and the Michigan Catholic

Conference. They say eliminating the credit would be the equivalent of a tax increase on the working poor.

The state faces a projected $1.8 billion shortfall for the fiscal year that begins October 1st.

Lately, you've probably heard or read a Michigan Radio story that includes this number: 1,800,000,000. In case you haven't had your morning coffee yet... that's 1.8 billion. Economic forecasters predict Michigan's budget, for the fiscal year that begins October 1st, is $1.8 billion in the red.

However, later today, that figure could change. That's because economists are meeting today for what's called a "revenue estimating conference" at the state Capitol. The economists will come up with an estimate of just how much money the state can expect to receive through the next fiscal year. As the state's website explains:

The Revenue Estimating Conference held each January is a major part of the budget process. During the conference, national and state economic indicators are used to formulate an accurate prediction of revenue available for appropriation in the upcoming fiscal year. This conference first convened in 1992, pursuant to Act No. 72 of the Public Acts of 1991. The principal participants in the conference are the State Budget Director and the Directors of the Senate and House Fiscal Agencies or their respective designees. Other participants may include the Governor and senior officials from the Department of Treasury.

It's not all bad news coming out of the symphony world.

The Grand Rapids Symphony is the second largest orchestra in Michigan, after the Detroit Symphony Orchestra. And yet the two arts organizations finances couldn't be farther apart. The GR Symphony posted a $65,000 budget surplus for the 2010 fiscal year; the DSO posted an $8.8 million deficit.

It's easy to criticize. Now you're in charge.

The New York Times has created a slick little interactive tool that displays different solutions to the country's projected budget deficits.