Tuesday, February 09, 2010

Daylight on the Grand Bargain?

With all due respect to those who are running for office, we have a budget issue that needs to be addressed this year - and the sooner the better. If Lansing takes this to another crisis stage, every single incumbent out there will probably face the wrath at the polls, and no one from either party wants to see that happen. They have their jobs to think about, those that are term-limited have their legacy to think about. Who wants to leave this job as being part of the most dysfunctional legislature ever? Hopefully no one.

So, while Mike Bishop runs around and says "no, no, no" to any sort of compromise, it is very interesting to find that we have not one, but two, Senate Republicans from the west side indicating that an expansion of service taxes would get through the Senate, as long as they get that pound of flesh from the state employees on health care.

(Mark Jansen, R-Gaines Township) said proposals to expand sales taxes to services, the growing sector of the economy, must go hand-in-hand with reforms like he and Hildenbrand have proposed, such as mandating public employees contribute 15 percent to their health care costs.

"I can't do a sales tax on services until I know we are going to get these reforms, because I don't want to be back here in two years," Jansen said. "We have to fix structural problems like health care.

Rockford Superintendent Michael Shibler said the proposed legislation could send $1.3 million back into his district's classrooms, and pressed the panel about whether districts could expect passage this year.

"This has to happen now. We can't keep waiting," he told them.

Hardiman said he thought it would pass the Republican-dominated Senate. But Hildenbrand said he needs help from residents and other groups to push it out of the Democratic-majority House. The unions have opposed such a change.

Jansen is one of the most conservative members of the Senate. Bill Hardiman is not far behind him. If they are indicating that service taxes are a possibility, that is a good sign. Granholm has proposed an increase on health care contributions for new hires, while offering early retirement to those on the old pay/benefit scale. And don't forget the new state run plan that the governor has branded as voluntary - and that is probably where Dillon's idea comes in. There are a lot of moving parts to this plan that could crash and burn the whole thing, but the fact that "no" wasn't the instant answer from these Republicans is an excellent starting point.

Were they just trying to placate an angry mob that wants the schools funded? It's a possibility, sounding reasonable for the audience, only to get back to Lansing and continue with their obstruction tactics. Time will tell - but now we have them on record as being open to the idea of reforming the tax base. The next time Mike Bishop says that "he doesn't have the votes", we will know that is not true.

Granholm releases the budget plan on Thursday. Stay tuned.