ELSENHEIMER CALLS FOR QUICK, THOROUGH ACTION ON BUDGET

House Republican Leader Kevin Elsenheimer issued the following statement in regards to today's state revenue estimating conference:

"We must act now to get the state's budget in order to do the things necessary to create jobs and move our state forward. Every day that we wait to act, the budget deficit grows and 1,000 more jobs are lost.

"Our caucus remains committed to solving the budget deficit through savings and government reforms, and through our budget workgroups, each member of our caucus will closely examine every dollar spent. In these tough times, we will look to restrict state spending to expenditures that reinvigorate Michigan's economy, reform government and reinvest in essential services.

"Michigan families are facing unprecedented challenges, and the first focus of the Legislature must be job creation. The ongoing budget crisis cannot be a distraction to the real issue of getting Michigan back to work."

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."

LEGISLATURE CUTS BUDGET: House Republicans: "We must all make concessions to move state forward."

The House Republican caucus unanimously voted today to approve a 4-percent cut to the Legislative and Judiciary budgets.

House Republican Leader Kevin Elsenheimer said the move was agreed upon in conjunction with the governor's executive order enacted this week to address the $1.3 billion budget deficit for the current fiscal year.

"As we ask Michigan residents to make sacrifices, we too must do our part," said Elsenheimer, R-Kewadin. "These cuts are a piece of the puzzle as we work to address the current budget crisis and the coming one. As we move forward, this is a step toward fiscal responsibility and smaller government, but there is more work to be done."

As lawmakers work to address the growing budget deficit, House Republicans brought more than $500 million of specific, cost-saving measures and government reforms to the negotiating table in an attempt to halt use of stimulus dollars. Republicans also previously called for a five-percent across-the-board reduction in state spending and freezing salaries to protect critical government services such as public safety.

"We cannot do the things necessary to move our state forward if we don’t get our own budget in order soon," Elsenheimer said. "Using the stimulus dollars to fill a budget hole does not address Michigan's most crucial needs - job creation and economic development. Our caucus will continue to look for ways to address the budget crisis while preserving stimulus dollars for economic stimulus, not government protection."

STATE GOVERNMENT POCKETS STIMULUS FUNDS: House GOP leads charge on government reform

With a looming $1.3 billion current year budget shortfall, Michigan House Republicans called on Governor Granholm to consider more cost-saving government reforms as she issued an executive order that solves less than one quarter of the deficit.

"With a $1.3 billion budget deficit, the governor today addressed only a quarter of the crisis," said House Republican Leader Kevin Elsenheimer. "House Republicans fought -- and will continue to fight -- for more cost-saving government reforms. We will support the governor's executive order today, as it is at least a step in the right direction, but we need to go further and will continue working toward solutions to reform government."

House Republicans brought more than $500 million of specific, cost-saving measures and government reforms to the negotiating table. Republicans also previously called for a five-percent across-the-board reduction in state spending and freezing salaries to protect critical government services such as public safety, and today renewed their call for transparency of government spending.

Elsenheimer noted that had the entire state budget been available online and available for public review, it would have been easier to target specific cuts, instead of the punitive cuts proposed by the governor.

"State government must change to meet the economic realities we face," Elsenheimer said. "You can't expect anyone to believe that state government is operating as efficiently as possible, and that public safety is the only place left to cut. We've known for months that the state is spending far more than it is taking in, but for months the governor refused to act, and as a result, public safety will be put at risk."

The House GOP also expressed their disappointment in using the federal stimulus dollars to fill a budget hole rather than create jobs.

"The stimulus dollars are being used as a quick fix to stimulate government, leaving no money for jobs or investment in the economy," said Republican vice-chairman on Appropriations state Rep. Chuck Moss. "The stimulus dollars are supposed to be used to create jobs, not help government balance a budget. This type of shortsighted budgeting is exactly what landed our state in this mess in the first place. We need to do more to reduce spending and reform government so we can fix our economy and get our state back on track."

STOP THE BLEEDING: House GOP: Day of reckoning is here as state's budget shortfall grows; Drastic and immediate action needed.

With the state falling deeper into financial crisis, House Republicans today proposed a three-pronged solution for dealing with the approximate $1.32 billion deficit that includes substantial and attainable cuts and real government reforms to lessen Gov. Granholm's insistence that federal economic stimulus money be used to shore up the current-year fiscal budget.

House Republicans provided budget negotiators a substantial list of cuts and continue to work on additional budget-saving measures that will be brought to the negotiation table. In March, House Republicans were first to call on Granholm to make the necessary cuts and rein-in out-of-control state spending. The governor dismissed Republican calls for fiscal restraint, opting instead to wait for new consensus revenue estimates due out in mid-May (see attached release).

"This is not a perfect solution, but it is a realistic one given the dire circumstances Michigan currently faces," said House Republican Leader Kevin Elsenheimer, R-Kewadin. "We cannot wait another minute longer. At this point, there is no part of the state budget that can be spared.

"The only realistic way we are going to solve this crisis is with a mix of substantive budget cuts, real government reform and, unfortunately, acquiescing to Gov. Granholm's insistence that federal stimulus dollars now be used to fill current budget holes."

Added Rep. Chuck Moss, ranking Republican on the House Appropriations Committee: "At the rate we're going, we may actually beat one of the auto companies into bankruptcy. We need drastic, immediate steps to put our state back in order. We tried the game of tax increases, look where that got us. It chased away business, foreclosed more homes, unemployment hit 12.6 percent. And we still didn't get the promised reforms. The day of reckoning is now. "

"Clearly the governor and Democrat's plan from 2007 has failed," said state Rep. John Proos, R-St. Joseph. "We were promised that the largest tax increase in state history would solve the problem, but now we're left with a larger deficit and a much larger unemployment rate. History is repeating itself because nothing changed -- no reforms, no change in spending habits, and no change in budget deficits. We learned in 2007 that tax increases are not the answer. With the state of the economy and the national economy, we simply must spend less money."

House Republicans said state government's failure to bring its spending in line with economic realities overshadows the more important work of enacting reforms and policies that will put Michigan families back to work and attract business investment and good-paying jobs.

"For every hour of inaction, Michigan loses another 40 jobs," Elsenheimer said. "The solution is painfully apparent: we can no longer afford the size of our state government."

WORKING TOGETHER FOR A BRIGHTER FUTURE, BRIGHTER MICHIGAN: House GOP, Strategic task forces to address state economic crisis.

The House Republican caucus today pledged to avoid drafting the customary dust-gathering report in Lansing as they canvass the state to collect new ideas in three key areas, unveiling a statewide initiative to improve the state's economic outlook by involving Michigan citizens, public policy experts and local officials in the development of public policy.

"We can sit and wait for the economy to improve, or we can work to make it happen," said House Republican Leader Kevin Elsenheimer. "Our caucus is committed to addressing the serious issues before our state. This is not about fanfare, headlines or politics - it's about finding new ideas for a better Michigan, not simply writing yet another Lansing report that gathers dust in some library."

The task force initiative is modeled after the success of a similar initiative that the Legislature employed nearly two decades ago when the state was at a crossroads. That initiative led to significant and lasting statewide reforms, such as Proposal A and welfare reform.

The caucus announced three strategic task force committees that will examine different areas across the state that will help move Michigan in the right direction - Jobs, Education and Agriculture. Assistant House Republican Leader Arlan Meekhof said the legislative panels will be charged with probing their issue areas, taking testimony from people and policy experts on the issues at hand, and issuing a detailed report outlining their findings that they will then utilize legislatively.

"Michigan is facing some serious challenges," said Meekhof, R-West Olive. "Putting our state back on track will require new thinking, which is why we are actively seeking ideas and input from outside of Lansing to develop strong solutions to the problems we face today."

The House Republican Caucus has had recent success in doing exactly that. Last term, state Rep. Ken Horn directed a statewide examination of the tourism industry, which led to bipartisan legislation to improve the Pure Michigan Campaign. As a result of those efforts, Horn has been appointed by Leader Elsenheimer to direct the task force initiative this year.

"The success we enjoyed last term points to the broad opportunity that presently exists," said Horn. "The members of these task forces are ready to fight for our future, and fight to find every opportunity for job creation in Michigan. They will be meeting with the real experts - teachers, farmers, small-business owners - who fight every day to stay afloat in these tough times. This will not be another bureaucratic report - we're looking for true reform and true improvement."

The Strategic Task Force on Jobs will be led by state Rep. John Proos. Proos and the task force members will hold hearings with business owners, employees, experts and officials on how to create and improve Michigan's jobs situation.

"Jobs aren't going to be created if we continue to rely on the same old ideas from Lansing," said Proos, R-St. Joseph. "This task force will be looking for new ideas, new concepts to help implement a long-term and strategic policy solution."

The Strategic Task Force on Agriculture will be led by state Rep. Cindy Denby, who will look for ideas to strengthen and maintain the industry throughout the state.

"Agriculture has traditionally been the backbone of the Michigan economy," said Denby, R-Handy Township. "And finding new ways to strengthen that backbone is now more important than ever."

The Strategic Task Force on Education will be chaired by state Rep. Phil Pavlov, and the policy developments will play a key role in positioning Michigan's children for a brighter future.

"A quality education is key to Michigan's economic recovery," said Pavlov, R-St. Clair. "Investment and improvements in education now will lead to high-tech, high-paying jobs in the future."

Elsenheimer appointed the following GOP members to serve on the task forces:

The Strategic Task Force on Jobs: John Proos, Chair; Jase Bolger, Marshall; Kim Meltzer, Clinton Township; Bill Rogers, Brighton; and Wayne Schmidt, Traverse City.

The Strategic Task Force on Agriculture: Cindy Denby, Chair; Brian Calley, Portland; Kevin Daley, Lum; Geoff Hansen, Hart; and Ken Kurtz, Coldwater.

The Strategic Task Force on Education: Phil Pavlov, Chair; Bob Genetski, Saugatuck; Eileen Kowall, White Lake; Tom McMillin, Rochester Hills; Tom Pearce, Rockford; and Paul Scott, Grand Blanc.