A couple items of note that portend of things to come. Looks like it's time to pay the bills. From the Freep comes word that new grants to schools are on hold until we get a clear financial picture of the state's finances later this month.
About $10 million in state grants to schools is being withheld while the state tries to figure out the exact size of Michigan's estimated $3-billion deficit, and what it will do about it.
Financially strapped schools are worried state officials will whittle away at programs while claiming to keep school funding intact by not reducing the per-pupil funding.
It's important to note that these grants were new, not a cut of existing funds.
"We think it's the responsible thing to do, given the state's financial situation," said Greg Bird, spokesman for the state budget office.
All the programs on hold are new, Bird said.
The state increased school spending in the last budget by $336 million. Most of that was to pay for a $210 increase in per-pupil funding, which starts at about $7,085. There also was $70 million in new programs. But that was before Gov. Jennifer Granholm's recent warning about the size of the expected deficit.
Tax credits for farmers also are being denied. Legislators are vowing to reintroduce this bill; perhaps they can suggest a way to pay for it when they do.
Farmland preservation advocates are unhappy with Gov. Jennifer Granholm's veto of tax breaks for farmers who promise to keep their property in agriculture instead of selling out to developers.
The bill won final approval from the Michigan Senate last month. But it was among several tax incentive measures the Democratic governor vetoed Thursday, saying they were too expensive. Granholm recently said the state needed an extra $1 billion to balance its budget for the next two years.
"It's all about the money," spokeswoman Liz Boyd said Friday. "We're supportive of the concept."
"It's all about the Benjamins". Say that next time Liz. It will get their attention.
Turns out the bill had a few flaws- besides the revenue reduction to the state, in true Republican fashion the bill seemed to be directed to corporate farms. Programs for smaller family farms are already in place.
The proposal was similar to an existing farmland tax relief program popularly known as P.A. 116, which is open to people below a certain income level. Many farmers who take second jobs to boost household income earn too much to qualify for P.A. 116, Walker said.
His bill would not have imposed a means test for eligibility. During legislative debate, critics said it seemed tailored for big corporate farms.
Granholm's administration also voiced concern that owners would use the program as a tax shelter to boost land's value before paving it over. To discourage that, the governor sought tougher penalties for early withdrawal than the bill's supporters would accept, Boyd said.
Were Republicans trying to give away the store while creating more tax shelters? What do you think? Farm land preservation has merit, but again it all comes down to the details.
Peter Luke pointed out the obvious in last Sunday's column- the free ride is over.
Granholm said in her inaugural that there wasn't time to waste, but she thus far has avoided laying out the inevitable choices that await -- that is, how state and local governments will respond to the economic change roiling the state. She did produce a business tax plan, but then said it was subject to change.
Since the election, she's been more coy than clear about how she intends to change the free-lunch practices in Lansing that have allowed Republicans to spend money and cut taxes without paying for either. Year after year during Granholm's first term, her budget director and now chief of staff, Mary Lannoye, would haul one more cookie jar off the shelf to balance the budget.
Now we are going to find out if people are willing to pay for the world they inhabit. If not, no more tax cuts, no more money for schools, no more forward progress. The chronic budget deficit will sink us.
The choice is ours. Pay a little now, or pay a lot later.
( Format note: I'm dropping the blue text that previously indicated my words. If it is in a blockquote, it's from the press. The titles on posts will now be the permanent link, ala the format WordPress uses. Better? I think so. )