Wednesday, January 28, 2009

Senate Republicans Suggest Using Stimulus Money to Cover Budget Deficit

Today, the Senate Republicans will once again vote to eliminate the MBT surcharge, the monster they created in '07 because they were intent on making Democrats pay a political price for raising taxes, the monster they repeatedly brought up last year, said they would address, and never did, the monster that haunts their guilty subconscious in a way that only Lady MacBeth would understand.

They blew up the budget last February over it. They vowed to fix it at Mackinac in May. They blew up the budget again in October, using it for a political stunt a month before the election. When all they had to do was come up with the corresponding budget cuts or replacement revenue, they repeatedly refused to do the heavy lifting.

That brings us to today, where they will try the same thing again, and for some reason, expect different results. The deficit this would create reads as follows: $166.1 million in Fiscal Year 2009 (this year), $457.5 million in 2010 and $593.4 million in 2011. The sharp folks at MIRS pinned Senator Mark Jansen down this time, and asked him how the Republicans intended to pay for this - and the answer was a hanging curve ball of hypocrisy that left me wondering just how far I could hit it out of the park.

The Republicans, who are running around wagging their finger and insisting that the governor not use the federal stimulus money to plug holes in the budget, are now suggesting that we can use the federal stimulus money to plug holes in the budget. In their roundabout Republican way, of course.

First, Republicans will deny the problem is as big as the Republicans said it was just a short time ago.

Jansen said that this is the year that Michigan has to consider real cuts to the budget, which looks to be running a $1.4 billion deficit. However, he said he wasn't sure if the number would be that high.


Next, bring up the boilerplate answers about cuts. Prisons. Destroy the growth in the film industry, the one thing that is creating nationwide excitement about Michigan and bringing jobs, money and that creative "youth" class with it. Gone. And oh yes, let's not forget the obligatory attack on the poor, because after all, you can't be a Republican without making sure the poor are made to pay so the rich can have their tax cuts. And state employees need more pain as well. You know, the usual suspects.

He said there need to be more cuts to Corrections than were outlined in the Council of State Governments report, which clock in at $16 million of the $2 billion budget for FY '10. Jansen also said the film industry tax credits should be on the chopping block and the EITC, which helps low-income families, should be frozen. Other things to look at are consolidating state departments, state employee pay cuts and early retirements, he said. Jansen said he's also amenable to Speaker Andy DILLON's (D-Redford Twp.) idea to open up the entire tax structure and possibly put a measure on the ballot.


And when it is pointed out that the fix for the MBT be revenue neutral, that is where the fun begins...

Although Republicans are dying to slay the surcharge, they recognize that there needs to be a deal with Dillon and the Gov. Jennifer GRANHOLM administration. The administration has wanted revenue neutrality, but Jansen said that might not be necessary, even with the existing deficit. He notes that Michigan will be getting federal stimulus money. That could be used for the General Fund, Unemployment Insurance Agency fund and road fund.


There you have it - Republicans want to use the stimulus to fix the deficit.

Better tell that to Matt Marsden.

"We can't let the stimulus package distract us from fixing our structural problem. We should be taking steps right now to begin scaling back and righting this ship."


Might want to clue in Pete Hoekstra too.

"What it will potentially do is enable the state to walk away from some of the tough decisions it will need to make and it will push them off somewhere into the future," Hoekstra said. "It will pump intravenous budget dollars into the state budget which is hemorrhaging. We may get addicted to it, but I don't think it will stay around long-term."

The Holland GOP Congressman said his fear about the stimulus could lead states to take the easy way out.

"You think given our current leadership, that's what's going to happen?" MIRS asked Hoekstra.

"Yes."


Those are just two recent examples. You can find many editorials and other snide comments from the DeVos Flying Monkeys all over the place when it comes to how we will use the stimulus money, when the truth is - it's the governor who is saying that we are going to cut, cut, cut this upcoming budget and not rely on the stimulus money.

Really. I've been trying to ignore her because she was seriously harshing my Obama buzz, but in light of Senator Jansen's statement and Hoekstra's pre-emptive strike of blame, it's time to point out who is on the side of fiscal responsibility here.

"A real strategic part of this is a careful investment in the things that will create permanent jobs," Gov. Jennifer Granholm told The Associated Press in a phone call from Washington on Monday. "You want to have lasting impact. ... You cannot use this to fix a budget problem and in two years find yourself in the same position."

---

Granholm has said to expect cuts when she makes her budget proposal for the 2009-10 fiscal year next month. "It's not going to be pretty," she said last week.


And this-

"For this year, we are not going to prorate K-12," the governor said during a late-morning news conference. "But all bets are off for next year."


And this January 9th radio address, where she invokes FDR, and said this-

Despite already making more than $130 million in budget cuts this year, we face an additional budget deficit of more than $1 billion that must be addressed in coming months.

Some may argue that the economic stimulus package being debated in Washington will solve these problems for us, but that just is not the case.

...

We have to continue to cut, reform, streamline and downsize.


Everyone get the message? Cuts. She is going to cut the hell out of the budget - and that will leave the Legislature in the position of having to vote to cut their local schools, cities, cops and firefighters, and health care access by huge amounts that they could not bring themselves to do back when we were facing about the same budget hole two years ago. It will be '07 flipped on its head.

Unless, of course, you want to use that stimulus money, like the Senate Republicans are suggesting. Just remember who it was that wanted to address the structural deficit, and who it was wanted to opt for the “one time” fix, because right now the Republicans want you to believe otherwise.