Tagged: state budget

Governor Rick Snyder spoke to Michigan Radio’s Jennifer White about his budget proposal for fiscal year 2013.

In the proposal are some funding increases for education, public safety and infrastructure.

Governor Snyder will present his budget proposal for the next fiscal year this morning at the state Capitol.

Lieutenant Governor Brian Calley told Michigan Public Radio Network’s Laura Weber that he expects budget negotiations will go more smoothly this year than in recent years. ‘The reason why last year’s budget was difficult is because it actually did fix the structural problems that had plagued us for so long. And because we did all the hard work last year, it makes movement in a more positive direction where we can all grow and invest together,” Calley explained.

Details of the Governor's budget have started to leak out and here's what we know so far:

From the Detroit News:

Gov. Rick Snyder will propose investing an additional $45 million in public safety as part of his 2013 budget proposal... Snyder noted in his State of the State address in January that Michigan has four cities — Detroit, Flint, Pontiac and Saginaw — that regularly turn up on the nation's Top 10 list of most violent cities. The governor has promised to roll out a detailed crime-fighting strategy in a Special Message to the Legislature on Public Safety in March.

From the Associated Press:

A projected budget surplus means an estimated 37,000 state of Michigan workers represented by unions won't have to take furlough days this fiscal year. The unionized workers had been expected to take up to four furlough days each in the fiscal year that ends September 30th. The furlough days were announced last fall because unions did not reach an agreement on concessions with Governor Rick Snyder's administration.

Later in the day, the Governor will hold a virtual town hall meeting to discuss his budget. The AP reports:

Snyder was so happy with how his town hall meeting on Facebook went after last month's State of the State address that he's holding another one. This time the governor will take residents' questions just after he presents his 2012-13 budget proposal to lawmakers on Thursday. Viewers can watch the hour-long town hall meeting beginning at 6:30 p.m. on the Rick Snyder for Michigan Facebook page.

You can submit questions at online at www.michigan.gov/townhall. Or, post questions on the Governor’s facebook page.

When the Legislature returns to the state Capitol next week, there will be another item added to its to-do list. That is: coming up with millions of dollars to fill a budget gap created by the state Supreme Court decision on Michigan’s new pension tax. The court upheld the tax on pensions, but said denying a tax break to some higher-earners effectively created a graduated income tax.

A graduated income tax is not allowed under the state constitution. That part of the decision also blew a $60 million hole in the state budget. Sixty million dollars is a small part of a general fund budget that exceeds $8 billion.

But it is an amount the governor and the Legislature will need to make up to meet their obligation under the state constitution to have a balanced budget. One possibility would be to use a projected surplus from last year’s budget to fill the gap. That number becomes official in January. But it appears the surplus will be somewhere near $400 million.

Lawmakers are already fighting over what to do with that money. Democrats say it should be used to restore some budget cuts to schools. Republicans say it should go into the state’s “rainy day” savings fund, or to pay down debt.

A legislative agency says the state is taking in a lot more money than it expects to spend as the books are about to close on the last fiscal year. The revenue estimates from the state House Fiscal Agency say the state appears to be in line to reap $285 million more than expected.

That includes a $145 million windfall for the School Aid Fund. Some Democrats say a portion of that money should be used to restore cuts to K-12 schools.

We are now just a few days into the state’s new fiscal year. State Budget Director, John Nixon gives us an update on the state of Michigan’s finances.

Nixon says many states relied on federal stimulus money, and now it's time to look at other options.

“We had a huge infusion of stimulus money and then there was a big cliff because once that stimulus money went away all the states are scrambling saying, “oh my gosh how do we keep our programs whole?” Well that’s what we’ve done. We cut a billion and a half dollars of spending out the budget and we balanced the budget.”

The Michigan legislature returns from break next week. While they will be faced with a new set of issues when they return, at least one legislator is critical of the work that’s been done so far.

Every week we interview lawmakers about what's happening in our state and the nation. Michigan Radio's Jennifer White today talks with Freshman Democratic State Representative Jeff Irwin about the state budget, working with the legislature and what we can expect in the coming months.

Governor Rick Snyder’s administration and state employee unions will open contract negotiations this week. The first topic of bargaining will be whether state workers will give up the salary and benefits they’ve already been promised.

The new state budget is not balanced yet. For one thing, the budget assumes millions of dollars in savings in employee costs. State state worker unions have yet to agree to those cuts. In fact, the state can’t even begin to negotiate unless the unions agree to re-open the current contracts. Kurt Weiss is with the state Department of Technology, Management and Budget.

“We know it’s a significant number. We know it’s a painful number.”

Weiss says the alternative to concessions is layoffs and privatizing services. The largest amount of money would come out of the state Department of Corrections.

State employee unions say state government is currently top heavy with managers and has too many contracts – and the Snyder administration should look those first before looking to squeeze more from frontline workers or lay them off.

State workers are scheduled to rally in Detroit tomorrow to protest wage and benefit cuts. Governor Snyder is seeking $145 million in concessions from state employees for the fiscal year that starts in October.

An official with one of the largest state employee unions, Ray Holman of UAW Local 6000, says over the last decade the state has shed more than 12,000 positions.

"And what that means for the average, for example, Department of Human Services caseworker, is they may have 700 to 1,000 families they’re responsible for."