SHORTFALL IS 'GAME CHANGER' FOR MICHIGAN: Elsenheimer tasks entire Republican caucus to find budget savings, cuts and reforms.

House Republican Leader Kevin Elsenheimer today tasked all members of his caucus to scrub every line of the state budget to come up with savings, cuts and structural reforms needed to fill another billion-dollar hole in the upcoming 2009-'10 state budget. State revenue estimates scheduled to be released Friday will show the state facing another deficit in the billions.

"Every day that goes by without fixing the looming budget problems, another 1,000 jobs are lost," said House Republican Leader Kevin Elsenheimer. "This billion-dollar deficit is a game changer. We must look in every nook and cranny of every state budget. We will apply a test to all expenses - is this expenditure an essential service, does it create jobs, or is it stimulating the economy? We have to find savings and implement reforms now. The alternative of raising taxes would be disastrous to Michigan's economy."

Elsenheimer said the entire GOP Caucus, not just the appropriations members, would be joining workgroups to closely examine all budgets and prioritize state spending and programs to:

• Reinvigorate Michigan's economy;
• Reform government; and
• Reinvest invest in essential services.

The work groups will start meeting immediately with an eye of presenting the reforms and cuts to Democrats and Gov. Jennifer Granholm as the Legislature works on the 2009-'10 budget bills.

Elsenheimer said House Republicans will keep pushing for spending cuts and government structural reforms to reduce spending, noting that House GOP budget negotiators brought to the table more than $500 million in tangible cuts in the current 2009 budget to help fill a $1.3 billion hole.

"We can't keep spending federal stimulus money to fill in holes in our budget," Elsenheimer said. "There are precious few stimulus dollars left and if we used every penny of it to backfill the 2010 deficit, we are still short."