Michigan lawmakers and Gov. Jennifer Granholm may have filled the $1.3 billion deficit in this year's budget. But we have not averted the crisis looming on the horizon nor have we taken the much needed -- and long overdue -- steps to reform Michigan's government to bring spending in line with economic realities.
We want a state government that provides essential services, cares for our most vulnerable citizens and protects families. But we also want one that lives within its means, especially when so many Michiganians are cutting back and the backbone industries of our economy are teetering on bankruptcy.
The recent budget solution is temporary. Its use of more than $1 billion in federal stimulus money to balance the budget means none of it went to stimulate the economy or create jobs.
In Lansing, we've approached fixing the state's perennial budget shortfalls much the same way spring potholes are filled: Pour in some asphalt and call it a day. The holes keep coming back, often bigger, and the same thing is happening with our budget.
That's why House Republicans pushed hard to bring substantial cuts to the table -- more than $500 million for this year alone -- and called for far-reaching government reforms. Michigan is running out of money and options.
Michigan's economy is in the worst shape it has been in nearly a half century. Tax revenues are at their lowest amount as a percentage of gross state product since the Great Depression.
While the outlook is grim, the fact that there are few easy choices before lawmakers and the governor creates an opportunity and environment for lasting reform. Here are a few suggestions, and they are by no means exhaustive:
• Prison reform. A state that spends more incarcerating people than educating them is heading the wrong way. But rather than releasing felons and closing prisons, let's get to the bottom of why it costs Michigan thousands of dollars more to house each inmate than it does in neighboring Great Lakes states.
• Education funding. Republicans want every cent of school aid funding they send to schools to make it into the classroom where it benefits students. Yet, nearly 40 cents of every dollar of school funding goes for administrative and operating costs. Let's find ways for school districts to consolidate operating costs with each other where it makes sense.
• Public employee retirement. The state, local municipalities and school districts must get a handle on rising retirement costs. Let's bring the public employees and teachers unions to the table and find out a way we can lower these costs in the future while ensuring employees receive the benefits they've earned. This is costly, but if we use federal stimulus to fund reforms, it will save billions of dollars down the road.
• Job-killing government red tape. Let's call a moratorium on out-of-control regulations and honestly sit down and come up with regulations that work. Recently, LS Power announced it would not build its clean-coal power plant near Midland, taking with it about 1,500 good-paying jobs and billions of dollars in local economic activity. It said Michigan's regulatory environment drove it away. When government is costing us jobs, it's time to rein in government's zealotry.
These are just some of the reforms House Republicans have and will propose. We have no pride of authorship and are willing to take a serious look at reforms proposed by others so long as they save taxpayer money, make government more responsive to the needs of families and businesses and are not one-time gimmicks that don't address the state's underlying fiscal problems.
There is much work left to do, and House Republicans are ready to do our part. Michigan has an opportunity to truly reform government. Let's not pass it up.
