Sunday, September 30, 2007

September 30, 2007



Months ago, when talking to my father about what was going on in Lansing with the '08 budget, how the Republicans were stalling and obstructing and the Democrats were playing right along, he said, and I'm paraphrasing here, "They will sign a deal at midnight on September 30th".


I had hoped he was wrong, trying to have optimism that they couldn't possibly be that irresponsible, but deep down I had a feeling he was right.


They took the first major votes towards completing this budget at 2am, September 30th. I'm sure glad I didn't place any bets.


The state Legislature took its first significant steps toward passing a long-anticipated budget deal early this morning when a committee approved a bill that supporters say would lead to savings in the cost of teacher health insurance.



The health care vote came about 2 a.m. About an hour later, lawmakers took another big step with the Democratic-led House approving a Republican bill that would give persons on Medicaid cheaper co-pays for leading healthier lifestyles.


Shortly after that, the House passed a bill that would require schools within their immediate school district -- a governing entity that generally covers a county -- to use a common school calendar. The idea is supposed to make it easier for districts to consolidate services like busing.


And then the House passed a bill that would prohibit state employees from receiving their pensions while also receiving a state salary. There are some employees who retired from the government, but then come back to work on a contract basis while still receiving a pension.


The momentum was stymied temporarily when the Senate refused to approve the committee report on the teachers' health-care issue. But lawmakers huddled again and, on the fourth attempt, the bill passed 21-17. The measure now heads to the Democrat-led House.


These are your "reforms". And it appears that this is all tie-barred to the tax increase.


The teacher benefit reforms are tied to an agreement that is to result in an increase in the state's 3.9 percent income tax and an expansion of the 6 percent sales tax to include some services such as haircuts and dry cleaning.



Lawmakers are bracing for a rugged early-Sunday debate over this issue, followed by two tax increases likely to be equally as controversial.


So, we aren't quite there yet, but it's starting to look like soup.


If the deal materializes, it likely will be seen as a victory for Granholm, who has said there was little room for substantial program cuts without endangering vulnerable people, education and Michigan's eventual economic comeback.


All true.


During the governor's meeting with Democrats, applause was heard several times, but the meeting ended without Granholm making a statement to reporters.


Speculation in the state Capitol was that a budget agreement would increase taxes by about $1.3 billion. It would include a boost in the state's 3.9 percent income tax to 4.35 percent -- which would raise about $765 million. And the state's 6 percent sales tax would be added on a number of services currently not taxed to raise an estimated $600 million.


As of this writing, the big red clock running at the Freep shows 18 hours to go. Maybe I should have bet on the exact hour that they would have it finished.


Hope that the lawmakers come out of this showing a little humility. While it's good that they got through the process without killing each other, I really don't want to see any speeches telling me how wonderful they are for dragging the state to this point because of political cowardice. They frightened and angered a lot of people out here-  they should keep that in mind if and when they pat themselves on the back for simply doing their job.



More at BFM on this ongoing saga. Haven't had the time to cross post everything.