Hello to all DailyKos readers, especially those who care about Michigan's future.
Michigan is facing a fiscal crisis, and we are at an economic crossroads. Last week in my State of the State address, I said that we have a choice. It's not a choice of left or right. It's whether we advance or retreat – whether we invest in our people and grow, or disinvest and wither. I told the Legislature and the people of Michigan that I have made my choice and now it's time for the people of Michigan to make their choice. If we don't make the right decisions in the next few weeks, our entire state – our students, our workers, our business owners and investors, everyone – will suffer the consequences.
Just as we did for our economic plan the first time around, we need bipartisan support to kick the plan into overdrive. So, I want to explain to you what I've proposed, answer your questions, hear your thoughts... and I hope – I urgently hope – that I can count on your support to move my plans through the legislature.
Unfortunately this is going to involve some difficult choices: after four years of cuts, and after resolving more deficits that any Governor before me, we need to cut even more. And we need to reform government so that we are doing more with less. And we need to create revenues. I want to get into some of the details and then I'm looking forward to responding to your questions and comments. I'll be here for about 45 minutes right now. I'll try to check in later and my staff will be happy to follow up as well.
To be very clear: we are facing a $3 billion deficit. This is due to decreased revenue because of the slow economy, loss of revenue from the repealed Single Business Tax, growth in Medicaid and Human Services case loads (particularly as more people seek help due to job losses), and growth in the prison population.
I'm proposing cuts and reforms that will reduce our prison population and create incentives for local governments to share services and save taxpayer dollars. And I'm proposing the Michigan Business Tax and a "two-penny" tax on services to replace the Single Business Tax. Together these proposals will put us on solid fiscal ground, and they will allow us to make the critical investments – in education and job training, and in health care and public safety – that will grow our economy and create jobs. Without these investments, we absolutely will not succeed and prosper in the new economy.
I announced this plan last week. And already naysayers are attacking my proposals – some people are quick to rule out any revenue-generating solutions to a fiscal and economic crisis. But the reality is that we have cut taxes for 15 years, and to cut anymore will only hurt our people and our prospects for economic growth and prosperity. So I need all the help I can get to push back and make sure that people are aware active and aware of these issues.