I realize I sent out a GBCW diary not too terribly long ago, but the dangerous tactics of Republican Michigan State Legislatures combined with a state Democratic party that refuses to think outside the box has led me to put up this plea, as the state budget process moves towards irreconcilable.
Regardless of whether we get a budget deal in Michigan in time to avoid a government shut-down (we are currently on a "continuation budget" for one month) the state needs to change how it does business on every level in order to have any chance of ending what is going on a decade of problems in the economy. These economic problems have now spread to an unraveling of nearly every level of life in Michigan. But there are changes that can be made in order to make things easier, and the incredible thing is that many of them have fewer drawbacks than you would think.
Reforms in the Structure of Government
Some these changes don’t have a cost savings, but should be made anyways:
Abolish term-limits and move the legislature to a part-time status. These changes need to be made together as a part-time legislature with term limits have proven to be among the most ineffective (yes even more so than we have now). However, the part-time model for legislature would end a lot of the dicking around that the state of Michigan has had with waiting till the last minute on the budget (and the decision to move the budget to July 1, up from September 30, to coincide with the schools, universities, and most of the local municipalities that has been proposed is a good one).
Speaking of the budget its time for the state to move to two year budgeting as an interim step towards having budgeting done on a three year basis. Every year the state budget process is basically starting from scratch leading to several hair brained changes with no overriding strategy other than to meet the Constitutional requirement that the budget be balanced (this isn’t just me saying this, no less a respected source than former University of Michigan Regent, Democrat, and current head of the Center for Michigan organization Phil Powers has voiced this complaint repeatedly).
The Government needs to streamline the number of appointed positions, which have actually grown under Jennifer Granholm, towards the minimum required by law. I know it hurts buts the state can not afford to have appointees we aren’t required to have (like "insurance czar" Butch Holliwell) when we are slashing funding to education on all levels. On the same token, the Governor’s spouse shouldn’t have a staff larger than 1 (it is currently a staff of 3).
Education
The state of Michigan is dead last in terms of the direction of higher education funding as the state has cut more money from higher education appropriations than any other state. This budget cycle the state is coupling the usual hack at the college’s budget by killing the Michigan Promise Grant, a reward to students for meeting certain goals and sparing families at least some of the crippling college debt that is becoming standard. A few days ago John McCullen (filling-in for Mitch Albom who apparently can’t go more than 4 weeks without taking time off from his radio show for something) had some moron from the Mackinac Center who claimed this was a "nice luxury" that doesn’t hurt anything to kill it...this man is a complete idiot, as anything that makes affording college easier is a necessity. Michigan needs to begin rearming our workforce by Raising college appropriations as well as aid to schools.
However, this doesn’t mean that the schools on all levels are free from change just because we are finally working towards funding them properly. On the secondary/non-college level the state needs to begin immediately with a consideration of, on the administrative level only, consolidating school districts. Gone are the days when every little municipality can afford to have its own superintendent and superintendent level staff. While school consolidation itself is a contentious issue for reasons that are too long to list here, under the idea of consolidating administrative functions, each school will still be maintained, thus eliminating some of the opposition associated with this. Also, something to consider: Do we need every single university system in Michigan? There has been some suggestion of consolidating some of the smaller university systems into becoming branches of the larger systems. I’m not sure that this would necessarily be most effective or have all that much in terms of savings.
As a final note: The decision of Jennifer Granholm to close the Michigan Library and disperse the collections to the four winds is a major mistake for minimal savings. I agree with non-partisan Metro Times columnist (and Toledo Blade Ombudsman) Jack Lessenberry that this is a mistake.
Taxes
Currently most Republicans would rather the state become a giant Youngstown rather than raise taxes but at least some should be considered, albeit coupled with cuts in taxes elsewhere. The idea of a graduate income tax has been considered, and actually has decent support (but its failed three previous times when its been up for the required vote so take that for what its worth) and if it were packaged with a removal of the hated Michigan Business Tax surcharge it would be a net positive towards the state’s economy.
The one unmentioned problem with the state tax code is the decision to completely exclude all public employee pension income (as opposed to partially excluding private pension income). The state covertly subsidizes the aging of its own population (by cutting things younger people would use, like schools and colleges, while subsidizing retirees...if you subsidize the aged while penalizing the young the young are going to take off) but the public pension issue is, on its face, an unfair advantage. Removing this exclusion will raise revenues.
The issue of a beer tax has been promoted by the Center for Michigan and Eric B. at Michigan Liberal and I think it’s a good idea. A small raise in the tax on beer would raise money and different studies have shown that it would not effect consumption. This has been disputed by the President of New Holland Brewery (in a crazed rant in a comment on a Center for Michigan article) and the Director of Marketing for Founder’s Brewery (in a much nicer, at least reasoned...though I disagree with his conslusions, letter to the Detroit News) who claim that it will put them at an unfair disadvantage to the neighboring states that have a lower beer tax.
Michigan Economic Development Tax Credits:
State Employee Benefits
Unless he can make a much stronger case for it than he’s made already, I am not in favor of Statehouse Speaker Andy Dillon’s attempt to consolidate healthcare benefits into one single plan for every government (state & municipality) employee. When Craig DeRouche (hard-right Republican former Statehouse Speaker) explains why the idea probably won’t work? Then your idea is lacking. However, a raise of the premium paid by state workers might need to be considered (from its current 10% to possibly 15%...which is still lower than some states such as North Carolina).
Prisons and Public Safety
It isn’t ever going to happen but Michigan needs to consider the idea of rehab rather than prison for drug use (non-distribution) as the rate of incarceration of non-violent drug offenders is an expense that we can’t afford.
Revenue sharing, which is a primary source of local law enforcement as well as fire protection is a cut that should begin to be restored.