A VIEW FROM THE RIGHT: TIME FOR HOUSE DEMS TO GO ALONG OR APPROVE AN ALTERNATIVE

If the Democrats want a tax hike, they’re going to have to vote for one. 

The Governor and the House Majority continue to play political games but the Senate doesn’t look to be interested in games.  Today at least the FY2007 budget has been balanced through cuts alone.  In theory.  In the Senate.  This afternoon, under Senate GOP leadership the senior chamber approved Senate Bills 436 and 437, cutting government spending by hundreds of millions of dollars, bringing spending in line with estimated revenues and forcing Lansing to live within it’s means.  The bills now head to the House. 

The measures passed in the face of continuous pressure from the Granholm administration to raise taxes, claiming she’d made all the cuts she possibly could, and several weeks Granholm’s April temper tantrum induced threat to cut school spending by $125 per pupil. 

While Jennifer Granholm continued her grandstanding before the Michigan State Medical Society, telling doctors and hospital administrators that without a tax hike the state would start forcing people to their deaths (her words were “people will die”), Bishop stood up and got something done.

When you look back over the last four-plus months it’s nothing short of miraculous that they’ve held the line this long… and this firmly. 

The constant target of the administration, the Senate minority and the House of Representatives and a more and more popular target of the mainstream press for his insistence on forcing government to live within it’s means before coming back, hands out and palms up to Michigan taxpayers, Bishop’s stood his ground, insisted that the cuts were there and darn it all if he didn’t find them.  Again.

If someone will point me to the petition where I can nominate him for super-hero status I’ve got my pen ready.  For that matter I’d like to nominate the entire GOP caucus and the minority caucus in the House for standing firm, steely eyed and determined to protect working moms and dads if no one else will.

But as good a day as Wednesday was for Bishop, it was a worse day for Andy Dillon and Jennifer Granholm.

Let’s examine a few facts.  Not opinions, not word games, not hyperbole and partisan rancor… facts.

The school aid fund:

Jennifer Granholm’s plan: Cut $122 per pupil forcing some schools to close.

Senate GOP: in legislation approved Wednesday, May 16:  $36 per pupil cut forcing no schools to close and saving public educators, the governor’s biggest special interest backers, $86 per pupil!

House Democrats:  Silence.  No votes, no legislation, no movement.

Medicaid funding:   

Jennifer Granholm:  Cut 6% and tell the state that “people will die.”

Senate GOP: Cut 3% so no one will die.

House Democrats: Silence.  No votes, no legislation, no movement.

Tax hikes:

Jennifer Granholm:  Has proposed in various forms as much as $3 billion in new taxes and Tuesday scuttled $337 million in bipartisan spending cuts because Republicans refused to acquiesce to a demand for a minimum $1.8 billion tax increase.  Conservative studies indicate her tax hike plan would cost the state 19,000 jobs at a minimum.

Senate GOP:  They’ve held the line for five months and balanced the state budget three different times now with spending cuts.  They continue to say NO to new taxes.

House Democrats: Silence.  No votes, no legislation, no movement.

Who exactly are the obstructionists?  And talk about reclaiming a little brand ID for the GOP.

So what’s next?  Well, the Senate’s done their thing.  They’ve passed legislation that balances the budget.  The ball is now squarely in the Democrats court.  The House has two choices.  They can either vote on the Senate measures or actually introduce an alternative plan. 

If Democrats continue to insist on “new revenues” (read: massive tax hikes) being a part of their solution then the time has come to introduce them and martial them through the House.  Put up or shut up, boys and girls. Time’s running out and continued cowardice in the face of fiscal crisis isn’t doing anyone much good.

What are you afraid of?

Guest Writer - Nick De Leeuw
www.rightmichigan.com

Comments

[JWinston70]

Unfortunately, my friend from the Right has missed a few key facts in his argument. Let's start with ,"...Bishop’s stood his ground, insisted that the cuts were there and darn it all if he didn’t find them. Again". Bishop's magic bullet of finding more cuts elsewhere attacks the MEDC 21st Century Jobs Fund. These funds are, sadly for Bishop, untouchable.

Here's Senator Valde Garcia's (R-Howell) statement from October of 2005 supporting the creation of the 21st Century Jobs Fund and outlining why the Republican actions tonight are invalid. MEDC (Michigan Economic Development Corporation), was created under Engler. 21st Century Jobs Fund is part of MEDC and funded by part of the the Tobacco Settlement money. Its funding is prohibited to be used for anything else.

Valde Garcia's (R-Howell) statement from the Journal, 10/05:

A key component of House Bill No.5047 is the creation of the Jobs for Michigan Investment Fund, authorizing securitization proceeds to be held and invested as permanent funds for the benefit of our great state. This investment in Michigan's future is authorized by Section 19 of Article 9 of the Michigan Constitution of 1963, which permits state funds held as permanent funds to be invested as provided by law, including, but not limited to, investments in the form of subscriptions to, or interests in, the stock of any company, association, or corporation.

The permanent fund created under House Bill No.5047, ***the Jobs for Michigan Investment Fund, will have permanency and a lasting impact on the economy of our state because money in the fund can't be spent for other purposes.*** It may only be invested for the benefit of the people of the state of Michigan and for the purpose of creating incentives for diversifying Michigan's economy; retaining and creating jobs in our state; increasing capital investment activity; increasing commercial lending activity; and encouraging the development and commercialization of technologies related to Michigan's economic future, including life sciences, alternative energy, homeland security and defense, and advanced automotive manufacturing and materials. - END STATEMENT

Bishop is not going to find funding, or waste as he likes to call it, from somewhere else. Believe me, he is not the only one looking. The fact is, Bishop knows that these funds are locked. However, he promised that he could find the waste in Government and make the necessary cuts. He has not found the waste that he has been seeking, but needs to save face. In comes the MEDC 21st Century Jobs Fund. By stealing these funds, he can look like the good-guy and reduce the cuts to schools to a mere $36 per pupil. The speed-bump for Bishop is that if these funds are stolen from their contractual purpose, Michigan will be violating several contracts and could stand to lose the money all together.

Before you go and claim that Bishop is Super-Hero. You may want to see if he can indeed, pull that rabbit out of a hat!

[Annick]

Ha!

The Dems in MI aren't going to vote for a tax hike anymore than the Dems at the federal level are going to vote to bring the troops home and stop the war today.

They don't have the ability to make a decision good or bad and take the heat from the resulting action. They want you to be the decision maker so, they get to be the critic.

That's why we have one party that makes decisions and makes mistakes (Republicans). The only way to avoid mistakes is never make a decision (yes, Dems, that's you).

The Dems have become the party of the missing spine.

[BobTheBoss]

Annick, chances are that the Dems WILL vote for a tax increase. Not necessarily because it's the popular thing but, they are in majority and can vote it and probably pass it if they choose. They believe cuts have been made, none are left and a tax increase is the final necessity for the state's survival. They don't need Republicans on board to do this, but obviously there are some on the right who are going to sign onto the tax increase program for multiple reasons (they'll tell the public it was the last thing left, but secretly they got favors taken care of by the Governor and her staff to get it through- help on future elections, maybe other seats on committees, etc.).

Will the residents of Michigan buy it - that's the tough sell. Politicians can vote however they choose. They will know if their decision to vote the increase was a good one when election time rolls along.

Do I hear another "thumping" to the Republicans in 08"? Time will tell.

That's my take.

[BobTheBoss]

Nick,

Can you clarify if the Dems vote for 'the massive tax hikes' you are talking about, and it passes, what final taxes will be in place? Are you saying the 2 cent proposal on services will return and be approved PLUS other tax increase programs or is something fresh in the works?

What's the word if this does happen. Seems like it might be inveitable right now. Shed some light if you can.

Bob

[JWinston70]

BobTheBoss - As the Dem in the mix here... I do not believe that Dems are looking for "MASSIVE" tax increases as Nick suggests. It is no secret that we need some revenues to keep the lights on. But the Dems are not advocating for typical social programs, etc. that Dems are known for. In fact, the tax increases that Nick alludes to are merely to a) generate enough revenue to fund the state and b) to replace the SBT. Even the Chamber of Commerce and Republican Leaders are crying for an SBT replacement because it does more damage to the state to not have one.

[Ryan]

There's an old saw in dining circles that says if you want to know how seriously a restaurant is about hygeine check out the restrooms.

They let you see the restrooms, if they can't keep up with that do you really think they're doing much within the comfy confines of the kitchen?

The same can be said of our government; and it cuts across both parties. Going from memory, but I beleive our Governor (whomever occupies the office, Dem or Rep) is the third highest paid governor in the nation.

Likewise - and again from memory - our legislators are in the top five when it comes to pay.

This is the part they let us see.

Now, much like the restroom is a heuristic as it relates to restaurant cleanliness, so is Executive and legislative pay. But instructive nonetheless.

But, we know we still have an antiquated way of delivering government throughout this state.

We have 700+ school districts and far too many local forms of government. Some of this is a holdover from past-times when travel was much more restricted. C'mon, it's 2007....

But, there's all sorts of duplicated costs throughout.

And as mentioned previously, the fact they have yet deal with how teachers receive health care insurance is quite telling.

Don't buy into this, "they're doing all they can" or "revenue is tight, taxpayers need to pony up more".

They haven't even begun to deal straight-up with the issues confronting the state. And, yes, this has been a long time in the making. But, its when the tide goes out that you find who's been swimming naked (stolen from Warren Buffett).

These people ran for these leadership positions...and, as we've seen, are well-paid for their services. The least we can expect is them to tackle the tasks at hand.

Best,
Ryan

[Nick]

The Dems scuttled a conference committee agreement on spending cuts last week because the Senate refused to go along with a $1.8 BILLION tax increase. I'd call that massive. But maybe I'm crazy.

Bob, to answer your question, the Dems haven't decided which tax hike they want to pass in the House just yet. They're doing internal polling and trying to buy off as many GOP votes as they can so they can let their vulnerable members cast a "NO" vote and appear moderate.

Right now it looks like they're going to go with an income tax hike but that could change.

As far as the rest of what our good tax-and-spender had to say here... umm... yeah, taking money from one fund and using it for something else violates the original purpose of that money. But no more than taking that money from any other ridiculous program. There's nothing sinister about it... it's what happens every time there are spending cuts.

Just because at one point we agreed to throw that money away doesn't mean we can afford to go through with it now.

Thanks though, for stopping by.

[Nick]

Well put, Ryan, thanks. In a $43 billion budget there's more wasteful and frivolous spending then even the most cynical among us might imagine.