Lansing Update: September 18, 2009

In this week’s Lansing Update:

  1. Multiple Budget Scenarios Arise After House Speaker, Senate Majority Leader Strike Target Agreement

Multiple Budget Scenarios Arise After House Speaker, Senate Majority Leader Strike Target Agreement

This week Speaker of the House Andy Dillon (D-Redford Township) and Senate Majority Leader Mike Bishop (R-Rochester) announced a targeting agreement that would cut approximately $1.3 billion out of the 2009–10 fiscal year state budget. Michigan is facing a $2.7 billion deficit, which must be balanced no later than September 31, otherwise the state will be forced to shut down temporarily until revenues are agreed upon. Federal stimulus funds are expected to be used to cover the remaining balance.

The extent of the budget cuts have drawn strong opposition [Link no longer available —Ed.] from advocacy groups such as the MCC, House and Senate Democrats and the administration since a large number of cuts are expected to come from programs and departments that benefit the state’s most needy populations. The agreement announced this week between the Speaker and Senate majority leader immediately created a host of scenarios that could take place in the days to come.

One scenario includes House Democrats opposing the proposed cuts, which would mean the budget process must start all over. A similar scenario would occur if House Democrats happen to agree to the cuts but the governor vetoes the legislation. Should either scenario play out [Link no longer available —Ed.], the Senate majority announced this week it would introduce and address next week a continuation budget [Link no longer available —Ed.] that would allow current spending levels to continue through October while budget solutions are pursued. Rumors have also circulated about the introduction of supplemental legislation to raise revenues in order to offset proposed cuts; however, Senate Republicans have indicated strong opposition to any tax increases or revenue enhancements. Senate Democrats have proposed several revenue-enhancing measures to prevent proposed cuts.

The targeted spending cuts agreed upon by the Speaker and Senate majority leader would affect not only human service programs, but also revenue sharing, K–12 education, mental health programs, state tuition grants, and several other programs upon which thousands of citizens depend. A list of the $1.2 billion in budget cuts approved by the Senate earlier this year follows:

Education:

Low-income assistance:

Health care:

Other areas:

According to Gongwer News Service, targeting spending for each state department, based on the agreement between the Speaker and Majority Leader, is as follows:

General Fund Spending
Dept FY 2008–09 Gov’s revised Senate House TARGET
Ag 28,546,100 33,987,100 30,588,400 30,477,000 30,588,400
Atty Gen 29,918,200 31,983,300 28,785,000 28,818,300 28,785,000
Civil Rts 11,860,900 12,320,100 11,088,100 11,097,100 11,088,100
C’llege 299,360,500 299,360,500 295,880,500 299,360,500 299,360,500
DCH 3,322,420,000 2,433,548,200 2,267,988,400 2,689,841,200 2,233,666,100
DEQ/ DNR 48,471,600 51,573,600* 36,488,500# 38,304,700# 43,674,400
DOC 1,957,641,400 1,908,399,600 1,870,399,600 1,898,399,600 1,830,399,600
Ed 7,074,600 24,605,700* 6,802,500 26,749,000 19,429,600
D’LEG 59,635,300 75,944,400 65,430,700 45,756,800 52,088,800
Exec 5,038,100 5,317,300 4,823,700 4,824,300 4,823,700
Hghr Ed 1,645,605,200 1,545,605,200 1,507,705,300 1,600,077,200 1,507,705,200
DHS 1,114,034,400 1,001,630,700 793,032,100 & 832,669,100
Jud 156,472,000 158,785,900 154,251,900 154,184,400 153,132,800
Leg Audit 12,047,800 12,486,800 11,238,100 11,571,600 11,238,100
Legis 109,471,400 112,994,200 103,787,500 104,699,700 104,764,900
DMB 288,901,900 315,264,500 307,248,000 307,656,300 295,974,300
DMVA 37,472,700 39,487,200 39,087,200 35,910,100 36,425,500
Sch Aid 13,371,906,800 12,963,600,000! 12,743,964,400 13,132,308,775 12,750,900,000
Sch Aid GF 78,000,000 40,800,000 31,800,100 39,625,000 31,800,000
State 24,795,800 28,214,200 17,892,800 25,600,400 23,255,400
MSP 269,752,200 278,474,500 267,259,200 267,259,200 267,259,200
Treas 69,810,700 68,733,700 59,800,100 66,663,000 59,800,100
Total 9,710,033,100 8,549,566,200 8,032,432,300 N/A 7,934,227,500