A VIEW FROM THE RIGHT - THE MICHIGAN BUDGET BATTLE GOES ON AND ON AND ON...

Following hot on the heels of the action in the Senate last week, the continued intransigence of the  House and the way Governor Granholm became completely unhinged there’s been more and more discussion about just what exactly we CAN cut and just what exactly we CAN reform in Lansing to make sure these budget deficits don’t happen in the future and more importantly, to prevent the radical left from picking our pockets and robbing us blind.

Last week at RightMichigan.com we broke the story and were the first to unveil the Senate GOP reform lists.  This generated some talk in the MSM.  Gongwer referenced Right Michigan and MIRS talked about the lists as well. 

But more than that it generated some discussion on the site and about three metric tons worth of email about other potential savings that didn’t make the Senate list.  We’ve gone over most of the savings that are out there thirty or forty times but it’s always been piecemeal.  A reform here, a chance for savings there.    I figure it’s about time to get them all collected so bloggers, lurkers, readers, voters, residents, citizens, taxpayers, families, legislators, local elected officials and anyone else I may have missed can see the enormity of the potential for real savings in Lansing.

All of that said, this list is certainly NOT exhaustive.  If there’s anything I’ve clearly and obviously missed post it after the story and we’ll keep the list growing.  Any other ideas?  Let everyone know! 

So without further ado, potential savings and reforms to state government that will balance the budget  without job-killing tax increases include:

Reform eligibility and work requirements in welfare to be more in line with our surrounding states and the national average: est. annual savings of $30 million.

Limit welfare to 2 years for able-bodied adults.

Medicaid reform:  est. annual savings of $60 million.

Prison reforms (aside from employee wage concessions): est. annual savings of $200 million from targeted privatization and reforms to address recidivism.

Tether all 65 year old non-violent prisoners and put them out on probation.

Tether non-violent criminals and charge them to be out on a tether.

Seek wage concessions in corrections to bring us inline with the national average instead of releasing felons: est. annual savings $150 million.

Senate GOP Public employee healthcare and retirement reform: est. annual savings of $220 million.

Privatize the public employee pensions:  cash out pension fund and change them to a 401K.

Define contribution for all state employees/teachers.

Change healthcare benefits for state employees 65 years old over to Medicare. </strong>

Consolidate Departments- HAL/DIT/DNR/DEQ: est. annual savings $3 million if consolidated.

Suspend state worker raises for `08:  est. savings $109 million.

Agree to suspend prevailing wage on all public projects when our unemployment rate exceeds 20% of the national average: est. savings of $150 million.

Cut executive travel expenses: est. savings $11 million.

Eliminating barriers to consolidation (SB 550 & 551, Sen. Garcia): Clarifies statutes to provide that when local units of government choose to consolidate or transfer services that the highest wage and benefit package of the two units does not have to be paid.

PA 312 Reforms (Language being drafted):   

--Adhering to time limits for the arbitration and awards process.

--Requiring that the timing of the presentation of the last best offer be moved to the beginning of the process to limit the number of items arbitrated and to facilitate faster resolution.

--Increasing the number and quality of arbitrators through training and a more refined selection process.

--Clarifying what constitutes a local units' "ability to pay".

-- Sell some or all of the state lottery: $750 million.

-- Cut legislative pay 5% (or more).

-- Cut public employee salaries 1% for those under $50K, 2% for those under $100K and 4% for those over $100K.

-- Remove or loosen the cap on Charter Schools to bring private dollars into the education system and force traditional public schools to “sharpen their pencils.”
   
-- Separate research from general support for Universities.

-- Change the funding mechanism for Universities to per-pupil funding like in K-12.
    
-- Privatize non-instructional school services.
 
-- Attract new jobs by passing Right-to-Work legislation.
   
-- Shovel ready permitting:  State, county, local unit permits pre-approved.

-- Consider selling sponsorship rights for public schools to local businesses.

-- Cancel plans to waste $5 million on a new State Police HQ and instead continue to lease property on the MSU campus for $1 a year.

-- Eliminate the Office of the First Gentleman: Savings of $250,000 a year.

-- Reign in state contracts: All told information and technology contracts alone have ballooned by over $1.67 BILLION.

-- Prohibit the state from spending money to Savings of at least $1.35 million annually (based on 2006 numbers).

-- Prohibit union officials from drawing a salary from the taxpayers for doing union business.

--  Part-time legislature with part-time salaries.

-- Reduce legislative staff (The legislators earn enough money to pitch in and help answer constituent requests).

-- Freeze or reduce salaries for legislative staff.

-- Increase health care contribution from legislators and legislative staff.

-- Implement Medicaid Estate Recovery program.

Fresh thinking, eh?  Many of these ideas I like quite a lot.  Note, if you will, that nowhere on the list is a single dollar being cut from K-12 funding nor are the old and infirm being cut from Medicare or Medicaid, insuring that the state won’t cause “people to die.” 

Please add any changes, savings or reforms that are missing in the comments section.  And the next time someone tells you the state absolutely MUST have more cash and that tax hikes are the right thing to do, dig out this list and illuminate things for them.

Guest Writer –

Nick De Leeuw
www.rightmichigan.com

Comments

[Dan]

Wow that must be the screw every state employee in all orifices bill. In almost every one of your little bullet points the cost savings come from taking away pay or benefits from employees of the state. With people like you no wonder state employees need to form unions. I guess you just won't be happy until laissez-faire day's are here again.

[Chuck E. P.]

Dan -

Hate to sound the wake up call you seemed to not hear, but it's time state workers and those in unions joined the real world.

It's not a free for all in the REAL WORLD as the average American worker does not get things like: top pay beyond the market norms, yearly pay increases, cadillac style health care plans with little to no deductibles or out of pocket expenses, padded pension plans where you can retire out early and continue to collect a state pension while working at other jobs, reduced work hours and extra holidays and time off. The average American does NOT see these benefits at their job. Frankly, the average person has been dealing with longer hours, fewer vacations and time off, reduced pay, limited yearly pay increases, more out of pocket expenses for health care and often no retirement programs outside of what the employee provides for themselves (via savings, equity in their homes, stocks, bonds, unmatched 401K's etc).

Stop throwing pity parties for those who don't need it. That includes state workers and union workers.

The masses support fair wages and fair benefits for EVERYONE - no more and no less.

Welcome to the real world buddy.

Chuck

[Brandon]

Strikes me as rather ironic that the 'view from the right' stance seems to be advocating something of an old-school Communist approach, whereby we're all supposed to race downward toward some base common denominator so that everyone shares equally in the misery.

I'd rather support policies and legislation that aim to provide people with the pay and benefits they may currently lack (e.g. single-payer health care) than focus on an easy scapegoat like government or union workers by saying "No Fair!"

[Dan]

Thats why its called a race to the bottom, brandon. All the while the ceo's and other corporate head cheese's rake in 10 and 20 percent pay increases yearly. But all they give us is the same b.s. that they have to pay that to get good people in that position. So 20 to 30 million per year don't get ya much in ceo land, they will run the company into the ground leave in a golden parachute, and the rest of the employee's get the shaft. The right is just using the same crap against governmental employee's now thats all. And if that is where the right is on budgets i'll be voting straight ticket dem for the first time in my life.

[E. Sparta]

Dan & Brandon,

Of course liberals want to provide pay and benefits to people who lack them, nobody shares "other people's wealth" quite like the liberals do. They are excellent at taking other people's money, spending it as they choose and then taking the credit for sharing with the less fortunate. They are SUCH giving people, aren't they??? I need a tissue, my emotions run over.

Too bad you don't advocate making those who have limited pay and benefits step outside of their often 'professional victim cultures' and better themselves no matter what it takes to improve their own lives instead of relying on others to do it for them. Everyone can pick up extra part time work or projects if they need more money. Everyone can move to a new job if a current one is not working. Everyone can take tech or vocational classes to improve their skill levels. Everyone can self improve at home as well. Those boxed in are there because they choose, not because options and opportunity are not out there. If the benefits and pay one receives is not good enough, find a way to better yourself instead of expecting everyone to give you what you have not been able to earn on your own.

If the two of you are against CEO's and big cheeses making BIG money, perhaps the two of you ought to try running a small business and then increasing the coffers so that a company eventually goes nationwide and perhaps worldwide too. The responsiblity levels, knowledge levels and expectations that go along with such terrority are not unwarranted to receive top dollar. The reason many DON'T go into business for themselves is the level of risk, time demands and requirements that are required. Most average people aren't equipped to handle such pressures and also, can't make the grade. We (including me) end up being workers instead, nothing wrong with that and thus, the pay and benefits that go with being a worker are in line with what they provide to a company. If you are against those who do step up to the plate and take things to the next level and get pay that goes along with that additional risk to reward ratio, I think it just boils down to envy and jealousy on your part. Life is not always equal and fair guys, it's about opportunity and what you do with it that counts. Sometimes opportunity comes to you. Most times you must go out and get it. I'd love to make what CEO's do (as yes, some of the numbers are out of this world), but I also don't do what it takes to get there. My guess is neither do you or millions of others. Difference between me and you, I don't begrudge those who do more, to get more.

As for equating asking people to take pay cuts during budget crunch times, be involved with their own medical costs/retirements costs and be a prudent citizen is deemed a form of "communism" is almost laughable. Only people who haven't a clue what communism really did to Russia, eastern block countries, Cuba etc. would say such an uninformed statement. If you want misery my friend, consider reading "The Gulag Archipelago" for a lesson in history, not a lesson in empty statements with no backing. When times are tough everyone, including state workers, union employees, and yes, even CEO's and big cheeses, deserve to share in the cut backs and the responsibility of getting things back on track.

Nick, you remain on target with your important and qualified suggestions that reform can and should be done at the state level long before taxes go up. Our legislators have more money than they know what to do with it. They must continue to cut the fat as there is plenty to be removed. We all know how hard it is to cut back and balance a home budget, let alone a government budget. It often takes multiple visits to a home budget to be strong enough to cut out things we don't need personally. But, it can be done. Imagine the difficulty in doing it at the state level where so much 'welfare' for nearly everyone is built in (welfare to citizens, corporations, public officials, lobbyists, etc). Keep squeezing and the excess will come out in time. Great ideas and great list, let's hope the GOP stick by it. You are on target, full of realistic suggestions and a voice of reason for those who choose to hear it.

Ellisa,
from Sparta

[Chris]

I see a stance here that reinforces why my father rolls his eyes when I vote Republican. Our government has plenty of money to do what needs to be done if they'd cut waste (and no, waste isn't state employee wages). The same goes for the federal government. The union workers got their wages through negotiations over the years and the people they work for were more than willing to give them when times were good. They spent money like it was water until "all of the sudden" the economy tanked and then they scream they need more money/cuts.

What I see from most posts here are people who aren't looking at the big picture. I guess the day that everyone makes $10 an hour will be a joyous day for them - except that someone has to pay the taxes, someone has to be the consumer. Oh, that's right - the 20 million dollar CEO will do it. He's "earned" the right to make more than every employee he leads combined, especially while he ships their jobs off to Mexico and saves the company another million a year (perhaps to pay for his vacation). Corporate welfare is one of the biggest issues and nobody has addressed that. Everyone talks about Meijer and all the jobs they create. Yes, they have many thousands of employees - most of whom can only get part time hours at a pittance and no health care coverage. Guess who pays for them when they go to the doctor? Can you imagine how much money the state would save if Meijer and Walmart (and on and on and on) were to actually pay a portion of their employees healthcare? People on this board will scream that it isn't the companies' responsibility or that it'll cut into profits. Really? How much profit did Meijer make last year? How much is enough? Perhaps if there weren't 20 million dollar CEO's these companies wouldn't feel the need to say they don't have enough. They almost seem to be in the same position as the state. They have more money in their pockets than they need, but they waste it.

As to Ellisa's comment - "Everyone can pick up extra part time work or projects if they need more money. Everyone can move to a new job if a current one is not working. Everyone can take tech or vocational classes to improve their skill levels. Everyone can self improve at home as well." - I don't think she's living in the real world. Oh wait, I think maybe she is. She's right - how many hundreds of thousands have heeded her advice already and moved to a new job - IN A NEW STATE? If there aren't decent paying jobs available the tax base will peter out (it's already happening) - scan the want ads...the needed jobs aren't out there. As more and more manufacturing jobs leave for Mexico (thanks NAFTA) you will have a larger and larger base of 40-50 year old people who are skilled, but haven't the education. I don't see what they're supposed to do except move on to somewhere where their skills can be used.

So - to wrap it all up into a neat little bow. The view of this board is to cut wages and benefits. That'll do us all a huge favor as the tax base wanes. People are already fleeing the state to begin with so the tax base problem is compounding daily. As people make less and flee the people that are working (service industry jobs are the majority of what's available) will begin feeling the pinch because there won't be as many people to come dine at their restaurant, etc. But that's ok because the well deserving 20 million dollar CEO will hopefully leave a large tip :)

-Last one out of Michigan turn out the lights

[The Editor - L.A.W.]

Hello Chris,

Even though you disagree with Ellisa, and your view certainly counts, I believe I understand where she is coming from.

I never approached the job market like many today who believe when they leave after 4-6 years of college or after working at a company for a number of years that their employer owes them. I don't live in a world where when I get a job, my employer owes me medical care, dental care, eye care, retirement and pension plans, top wages including regular increases and lots of fun time off. The golden world of jobs like that died away in the baby boomer generation. I realized that awhile back. Most of us live in an age that legally supports at will employment. That means I can leave at will, no reasons needed. Your employer can let you go, no reasons needed. The good old days of a secure job are a distant memory.

When I take a job my goal is to use my education and experience to the maximum and get as much as I possibly can for my abilities and skills. But, when things don't pan out or times get tough, I get resourceful. If my employer isn't able to give me further pay or benefit request, I have three options;

1) Reduce my budget and live within my means
2) I find other work that pays better
3) Find other income to supplement my main income

That means, taking part time jobs where they can be found. Many people absolutely refuse to lower themselves to doing honorable service sector work such as waitressing, cashiering, stock work, cleaning, etc. to make a few extra bucks (and there are still plenty of these out there). A second job may be hard and unrewarding at times, but it helps fill in when times get tough. Also, it is often short term. I know few who are willing to loose valuable free time and work even harder to get this done. Everyone wants the perfect first job and won't look elsewhere to solve our problems. Dont' we all but, that's not always an option any longer.

It can be done. I've worked a number of short, part-time jobs along with my full time job over the years to do what must get it. It was hard, it was exhausting and it was a must. I made it through each time alive and well. Above all, I have the confidence and the knowledge that as times get tough again (as they are now) that what I did in my past to survive and thrive can be done again if needed.

Next thought, some people will have to start over. Their area of expertise may be reduced or even eliminated. That is when they will need to be creative and move into other positions, other jobs or other fields all together. They may even have to take lower wages and benefits when starting anew. It's not great, but it happens all the time and people find a way to make it work. The change is hard at first but eases over time.

I feel strongly that people have to stop living BEYOND their means too. Not nearly enough people are making the type of money they need to be living in huge houses, 2-3 brand new cars in the drive-way, lots of toys (boats, motorcycles, rv's, ski-doos, etc.), family vacations 2-3 times a year, brand new clothes, eating out multiple times each week, going to the movies all the time, buying mocha lattes each day for work and giving the kids an allowance each week that is equivalent to what I got as a kid in one year! People need to adjust their budgets for the times as well. You can't keep up with the CEO's on the average workers pay.

I can't be responsible, nor can most of us, for other people's lack of good planning. And yes, this must be addressed. Millions in this state reaped the rewards of boom times when it came to auto plants, auto related businesses, manufacturing, etc. Too many blew their money on things that were short term (vacations, outings, parties, gambling, clothes/jewelry, cars etc) and not enough put money toward the important things for tomorrow (investments, savings, bonds, equity in their houses, etc). Fewer yet understood early on the importance of keeping ones skills and abilities fresh and new in case their job changed one day. So, when the times were good, they were great. When times are bad, we all suffer.

People must be vigilant as nothing stays constant. Planning is a must in all phases of life. When times get tough, it is much worse for those who didn't plan or refused to go beyond the norm. We can't always point the finger of blame at CEO's or businesses for our own circumstance at least not all the time, as sometimes what happens to us is of our own doing. Ya know?

In the end, I advocate personal responsiblity, in all things. We must be responsible for the choices we make; what job we take, if we keep our skills up or not, if we budget well, if we live outside our means, if we save money or simply spend it all, if we plan for tomorrow, and so on. Don't put the power in someone else's hand.

Some residents will choose to leave our state, that is their choice. They may be better for it and that's a plus for them. Not all migration is a bad thing. Many will find new opportunities and growth that they wouldn't have had they stayed in the same old, same old. It's odd, but sometimes the worst brings about the best. Don't assume all those leaving will have it worse. Many will find success beyond their expectations. Many will return in the future (remember decades past)? No need to turn off the lights, like Motel 6, keep them on and visitors and residents will return one day. This state is too great to go down completely.

We have been though such crisis before. We can and will weather it again.

Regards,

Bridget

[Brandon]

Chris has articulated much of what I intended to post in response Ellisa's thoughts, so I'll add just a couple of things worth mentioning:

- Bear in mind that a great deal of the "excessive" benefits that people perceive union and government employees as enjoying came about as a result of foregoing salary increases and other forms of compensation.

- Fraud, waste and abuse absolutely exist, and there is always room for making cuts (even from the standpoint of a bleeding-heart liberal like myself). I'm all for a balanced approach, and I think it serves no one's interest to constantly argue things from an ideologically inflexible, "either/or" position. You can certainly argue about *how* things should be paid for, but the fact remains that they must be paid for. Infrastructure, both physical and social, needs to be maintained in order for businesses to view our state as economically viable, and hey: things cost money.

- My initial suggestion for single-payer universal health insurance -- and I have no problem calling it what it is: socialized medicine -- is meant to appeal to that very same balanced approach. People need health insurance; it shouldn't be an option, because it's not only morally decent, but when people go without it, society pays for it in myriad ways (why do you think two Motrin tablets cost $25 in a hospital?). The current privatized system is manifestly in shambles (and we don't need a Michael Moore film to make us understand that). But single-payer health insurance is also good for business. How? Because when a corporation doesn't have to pay bloated insurance premiums, it helps their bottom line. Why is it that GM now actually manufactures more cars in Ontario than in Michigan? Because their Ontario plants aren't responsible for privatized health insurance premiums for their workers. Sure, they pay taxes to the provincial government for insurance coverage, but it's markedly less than what it would cost for private insurance. Someone please explain to me why we can't make that happen here.

[Chris]

Bridget,

I understand what you are saying and completely agree with the "living within your means" approach (I've never understood why every house built is a quarter million or more - who buys these)? That said - your option of reducing your budget is what I feel is ultimately going to do our economy in. If everyone is forced to cut back (and most are) then who is paying the taxes or buying the goods? What about the service jobs that people won't stoop to? It's a downhill spiral. People need to be able to make a living - the option of finding a better paying job isn't much of a reality anymore. I personally own my own home (the bank does) and it's the low end of my township (not ghetto, not fancy). I own no extra toys, have no credit card debt, and still barely scrape by some months. My mortgage is barely over what my rent was. I pay taxes on my home, on any home improvements I do, etc. If my wage was to be cut I'd survive but at who's expense?

As for Brandon's "socialized" medicine - I see the pros and cons of it - what really scares me is that it'd be another bloated bureacracy and I just don't believe our government is capable of pulling it off. It certainly would lower prices across the board if it could be implemented.

[Brandon]

Chris,

The fear of a bloated bureaucracy is legitimate, and as I see it, it's easily the biggest downside to such a program. The current system, however, is quite the bureaucracy unto itself (20% to 30% of every privatized healthcare dollar going to administrative costs, versus anywhere from 2% to 15% for Medicare/Medicaid/VA, depending on whose numbers you want to cite) -- to say nothing of the 47 million people who lack any coverage at all, and the untold numbers who *think* they're properly insured until something drastic happens.

I understand the natural, almost reflexive instinct on the part of business owners to run in the opposite direction when confronted with yet another tax, but it's hard for me to imagine a business owner who, when presented with a choice between paying 'X' in taxes for single-payer insurance versus paying TEN TIMES 'X' in privatized premiums, wouldn't choose the tax every time.

I'm not suggesting that a single-payer system is a panacea, or that it wouldn't present us with several ongoing difficulties. But if the alternative is a continuation of the inadequate, inefficient and ever-worsening system we have right now, well....

[Dan]

Brandon,

I could not agree with you more, if we simply implemented a medicare for all, it would cut billions out of the health care dollars we already spend. It would also cover all the folks out there with out coverage, which those of us with insurance have to pay for to make up the money hospitals lose on their care. This would also make us more competitive in the world marketplace where other countries are able to spread the cost of health care though out the economic structure. It cost more for heath care on a car or truck than it cost for steel, those on the right just say we need to cut all there benefits to make up for it, i say we lift up the ones with out care to be covered.

[The Editor - L.A.W.]

Hi Chris,

I'm not sure where you want me to go with the case scenario you gave me? If we don't continue to spend money and pump it into the economy at the rate we are, regardless if people are over-spending or leveraging extra credit to do so, the economy could collapse because we aren't buying goods and contributing to the tax base? Ummm...what?

I'm no economist but it seems that part of our economy is a false one right now as many people have borrowed equity, personal loans, credit cards and advances etc. to have the purchasing power they have. It has nothing to do with the money they are bringing in nor their real ability to pay the loans off or down in a timely manner. Bottom line is the majority have spent well beyond what they do make and will make. Most people seem to be carrying large balances at this time (you appear to be unsual with your debt free situation but, congratulations are definately in order. You might not have lots of money but, you don't owe anyone either!). People are buying things and paying taxes, but at what cost at the current level? The economy slows down or hits a hiccup and we all go nuts, broke and into an ecomonic downturn overnight? Something is wrong with this picture.

We can't be responsible for what our government or city does. We must be accountable to ourselves first and foremost. I'm simply suggesting people take a look at their home spending and make sure it's reasonable and not over-extended. If it is, changes might be in order to avoid a current or future crisis. We can alter our personal lives through prudent living, we can't control the government so easy. I'm simply advocating people get wise about their jobs, their savings, their debt and so on. There is always going to be taxes on things and people will buy goods. Transactions will still occur, just in slightly reduced numbers.
Much like we need to get our personal houses in order, government and business need to be doing the same even if there is some short term pain for long term gain.

Are you happy living so close to "the edge financially"? My guess is you are not from what you wrote. You are a prime candidate to do extras to bring in those additional funds to make your situation slightly better. Don't wait for your current employer to control your life, make extra decisions on your own if you want to get to the next level. You can do it. So can all of us if we try.

I guess I just don't look at the negative. I look at the positive too. If there is a problem, then the next question should be: how, what and why. From there, what is the solution, the corresponding answer should be: how, what and why.

Regards,

Bridget

[Chris]

Bridget,

You bring up a very good point regarding credit and over-spending fueling a good chunk of our spending - I won't disagree with any of that. I guess the long and short of my argument was that Ellisa argues in favor of the wage the CEO makes, while suggesting that people that are trying to make a living can (and should) squeeze by with less. We're already becoming a 2 class system with the rich getting richer, the middle class being phased out, and the lower class getting quite large. I don't advocate wealth redistribution but I do advocate fair labor practices and I truly believe that most companies that are laying people off or shipping the jobs to Mexico are still turning a profit. They are slaves to the shareholders and the American worker is being pushed out because of it. The people running these companies still keep their posh (and quite overpaid jobs) or get insane severance packages that set them for life while the workers who have given half their lives to the company are pushed out like garbage. My argument isn't relying on the government - I'm relying on decency which has gone out the window (probably forever I'm afraid). I personally work for an institution where the waste is so mind-boggling that when wage concessions are suggested I find it laughable. I can point to several million dollars worth of needless or failed "projects" and ask how many employees those dollars could have saved. I point to a management that is so top-heavy and ask how many of their jobs are truly necessary and how much money could be saved if the fat was ever cut from the top instead of the people actually producing the goods.

I don't care how much sunshine anyone on this board wants to point at the whole "go to college, get a better job" scenario, we've created an economy where the good paying jobs just aren't very plentiful and like it or not, even if everyone had the ability to truly better themselves (tuition money, etc), there simply wouldn't be enough jobs for them all anyway which is why we have college graduates running registers at Barnes and Noble. I personally am not "living on the edge" financially. I have a savings fund that I won't dip into unless there is an emergency so when I say I barely squeak by some months it's not for a lack of funds, just my personal choice to not stretch myself too thin. That said - I am not over-extended. In my opinion I've done things right - I live within my means. Who is anyone to tell me that my employer is justified in cutting my wage, while continuing the insane wages/benefits/bonuses of upper management, etc. Across the board the economy is run that way and when everyone that isn't in upper management is making a barely livable wage things will suffer - I don't believe it'll be a slight adjustment either. My father's company has downsized by 600 employees in the last 5 years - he's still hanging on there but isn't sure how much longer. He has certainly never over-extended himself - he's lived prudently. He never in a million years would have guessed that he'd work somewhere for 25 years only to have the government allow his job to move to Mexico :) The reality of today's economy is that there are more people like him than people want to admit to. If someone wants to claim that the American worker has been overpaid for the last 50 years or better and that the American way of life is too extravagent then I suggest we all hold on because the ramifications of what has been suggested here will be extreme. We already have areas in Grand Rapids that are virtually slums. I fear finding here what we see on TV in China and Mexico - pictures of massive slums partitioned off from the gleaming buildings of the chosen few. Quite frankly I think that NAFTA has already made it too late to prevent it.

[The Editor - L.A.W.]

Hello Chris,

I'm approaching my middle years soon, (turning 40 this year), so I can't look back too many years and say, ah yes...remember the times when this and that happpened, or that decade when this and that happened, and so on?

But, I do remember how dark the economy was around the U.S. and especially Michigan when I was growing up in the 1970's. Seemed like everyone we knew was moving out west and to the south west as interest rates were sky high (I'm talking 14, 15, 16% unlike today's whinning that 5, 6, 7% is too high), gas and food prices were astronomical, taxes were killing everyone, jobs were fading fast, many were in the unemployment lines and everyone was moaning about the gloom and doom. I remember people saying the last one out turn the lights off back then. Even in my short life time, this is a reminder that our current economic situation - negative as it seems - is not a first. We've been through very tough times before. It just never gets easier the second, third or fourth time around.

You addressed many areas that cause the average worker to be unhappy with their jobs and their employers. Things like:

the enormous pay packages and perks that CEO's often get
the disparity of their pay to the average worker
the large amount of wasted money and time in the orginization of many corporations today
people loosing jobs after long periods of work with companies and being tossed onto the streets after long term company loyalty
how Wall Street jumps with glee when Main Street cuts jobs, reduces employee perks and moves companies to cheaper waters, etc.
and so on

You are not alone in your disgust and anger at such practices. It doesn't feel fair or right for a company to do such a wrong to it's employee base. To the hard working American that "built" this country from the bottom up and has kept it running over the decades, the actions against them are almost a betrayal. In the old days, workers were told put in a full day's work and be rewarded for it. Show honor, integrity and loyalty and be rewarded with decent pay, benefits and possibly a job for life. Things have changed in decades past, that philosphy no longer stands. Partly because boards want to see higher returns, better stock prices and top standing on Wall Street. That often means reduced pay, reduced benefits, downsizing and lost jobs to Main Street. What's good for one, is very bad for another. The ironic thing is that so many Americans are now in the stock market that what is good for their retirement pocketbook can be bad for many people's daily lives.

When times get bad, many people feel like they are powerless. They feel like have less importance than they should be commanding. That they are victims to the system. That their loss is isolated. That they have no value any longer.

I would remind workers that they have as much value to a company as the company does to them. People who scoff at this are the ones at risk. If you put all the power in your employer's hands and don't have a back up plan, then you become the one at greatest risk for loss. Workers need to stay involved in their own planning - keeping up on their skills (whatever it takes - on the job extra cross training, vocational or tech institutes, con ed classes, college, university, etc.), put in 100% everyday, stay on top of their pay, benefits and reward options, toot their own home when appropriate, being personally responsible at home financially so, they can move to other jobs if/when time and planning permits, etc.

If you say it can't be done, chances are you won't find a way to do it.

Say it can, and you'll find a way.

One thing that has always moved this nation to greatness is what happens when one gets kicked when they are down. Some take it silently and do nothing. Some get angry and bitter, but go no further. Many get fired up and commit to doing something. Be it moving to a new job. Getting a new skill. Re-evaluating their financial status and making fresh income, debt and savings decisions and so on. Many use great change to become inventors, entrepreneur and small business people themselves. For most, getting sick and tired of an old job that didn't do right by them is what motivates large numbers to stop being a worker and become an owner. Drive down any street in this nation and you'll see the evidence of people who got fed up and wanted more and hoped to give others more too - the local pizza parlor, the corner party store, the gas station owner, the plumber, the electrician, the barber and beauty salon owner, the landscape company, the painters, the machinists and so on. Hopefully, these businesses will reverse the trend of the owners getting it all and the employees getting so much less. I think the comfort margin in business for employees is greater in smaller companies than larger.

Can everyone leave an old job and start a business or turn a hobby/craft/idea into future work? No, but many many can. For those who aren't able to move on their own - ability wise, time wise, motivation wise, money wise, etc. then, those are the ones who will need to be prudent when it comes to keeping up their skills, home budgeting and making themselves a hot commodity. Become the employee everyone wants, but few can get.

Ultimately, as much as many don't like to hear it, an employer doesn't owe anyone a job. They don't owe them pay. The don't owe them a benefits package.

Likewise, an employee has rights too. They don't owe a job their hard work, loyalty and devotion unless they choose to give them those things.

It's when the two parties come together and agree on terms and conditions that hopefully, middle ground will be met. For the good of the company and the good of the employee too.

Certainly CEO's, CFO's, COO's, and others get perk plan beyond belief. No dobut about it. On the other hand, to the average person who is not a union employee (auto plant,teacher, government/postal worker, etc.)those perk packages and pay plans look mighty sweet to the rest of the world not making those numbers as well. To millions, union perks look as big as CEO perks to those with less. In some ways, it's all arbitary. For those who choose to see the big cheeses at fortune 500 or even fortune 100 companies as the devil in disguise what's our option to get back at them for having so much more than us? Be resentful of what they get and we don't? Feels good for all of two minutes. What then? We could try not spending money at any company that we feel isn't ethically or morally correct. At least then we feel some sense of power. That's great until we really need a specific home improvement product, car part, food product for our kids, etc. and we need to buy from that same company that we boycotted due to a values conflict. Then the problem escalates. Fix a problem or be ticked at the big, bad, rich boys? Hmmm. What then?

Our greatest power as individual citizens is to empower ourselves.

Perhaps our parents generation can't as they are at the tale end of their working cycle, but the current generation, next generation coming up and those thereafter certainly can. That means doing all the right things to take care of ourselves -educate yourself best you can, seek extra skills whenever possible, take jobs - even multiples at once to boost experience and ability levels, budget well at home for income, debt and savings, plan for retirement, move to new jobs if old ones aren't working out, and don't over extend oneself-live within your financial window. This is the only way a person will have control over what happens in their lives versus what others will do to them.

So, I sympathize with your anger and resentment at the corporate environment in place right now and the lack of fiscal restraint and balancing by our city, county and state. We are always going to have good and bad times. What will you do to make the bad times better is the question at hand? We can be part of the problem or part of the solution. I would take that irriation, that frustration and channel it into more. Just don't allow it to move you into a victims mindset or culture. Woe is me. Look what they did to me. I gave them so much and they gave back so little. No matter what happens, do something positive and do something good for yourself so the cycle is broken and something new and better is created.

Thanks for your interesting and thoughtful replies earlier. Very appreciated by us and our readers as well.

Regards,

Bridget

[Glenna]

For every statement, someone counters with the opposite...

CEO's make too much money
Workers make too little money

Raise taxes that will solve everything
Reform rather than raise taxes

Socialized everything is the answer -health, perscription, social security etc.
Personal responsibility is the answer

Big business is the bad guy
Big business helps make the economy move forward

I'm not making any more concessions, I've done enough already (the little guy)
I'm not making concessions, that's for the little guy (the CEO)

And on and on and on.

Yes, jobs and businesses are leaving this state. Yes, politicians can't come up with a workable solution for the masses. Yes, the economy is in the tank. Everyone has an answer but most of the times it's only good for THEM. Until everyone takes a look at their own wants and needs AND balances it along with the needs of others, we won't find a real solution that benefits us all. Michigan will lag behind all other states and be the one they point to as a reference of what not to do if we keep up the status quo here.

Michigan is a great state. So are the people. Let's work together to fix this and stop pointing fingers, stating bumper sticker slogans if we don't like the other guy and make a real plan for a prosperous tomorrow.

[Martha]

My educated guess?

If the state looked at Nick's list and implemented ONLY 1/2 the suggestions there and did the proper cut backs, reductions and steam lining, then the rest of the state would probably be willing to consider some type of modest tax increase if necessary for the good of the citizens, the community and the state. That way each party is meeting at a miniumum halfway to get things back on track.

I'd personally like to see most of the suggestions done. Then, no tax increase would be needed. Chances are most won't happen as everyone is too bsuy looking out for #1 to do the greater good.

We'll see what happens. I liked the list bottom line.

[Nick]

A lot of great discussion. Just a note, very few of those line items on the list have anything to do with pay and benefit reductions for public employees.

Most are matters of right-sizing government, cutting waste and just plain thinking outside the box.

Don't want to cancel a $110 million pay RAISE for public employees? Fine. Lets discuss collective bargaining for teacher health insurance, a move that could save $220 million a year without affecting benefits one red cent.

Don't want to bring public employee retirement benefits in line with the private sector? Fine. Lets discuss capping welfare benefits for able-bodied adults at four years, a move that would leave Michigan STILL with the most liberal welfare state in the region.

Or right-sizing corrections. Or cutting executive travel. Or selling a portion of the lottery. Etc. Etc. Etc.

This isn't about a race to the bottom... we're already there. It's about setting Michigan up as a competitive place to create jobs and to raise a family. Because right now, we just plain aren't. Period.

[Chris]

Nick,

Thanks for your other suggestions on this issue - I did get pretty focused on the one issue but it's one that's a pretty good sore point for me.

I completely concur that raises for public employees need to be capped now (unless they are contractually negotiated) - no new raises while times are as they are. Same with retirement benefits - no cuts to what's been negotiated but no sweetening of that pot either.

Welfare reform and capping is another sore point although I'm probably on your side of the aisle on this one. I clip coupons and buy Meijer brand products to try to save a few dollars and I watch people with food stamps purchasing lobster and brand name items with no regard to what it costs. I see now they are issued a card they can actually draw money from and have friends who work at Meijer who have witnessed this money being withdrawn and used for smokes and lotto. It's probably one of the most broken systems we have.

When my great-grandma was in the nursing home Medicare allowed for someone to come in every 2 weeks and clip her toenails for $150 a pop - they had psychiatrists come in bi-monthly and they always came back that she had dementia (imagine that - that's why she was in there). Medicare paid for dental cleanings even though she had no teeth, paid for vision exams even though she was legally blind, etc etc etc. I see this kind of waste (which should be illegal) that makes me so adamant that government stop demanding concessions from the middle class workers. Public employee wages and benefits seem to create quite a fuss with people but I don't see/hear any outrage at the true problem!

[Nick]

Right on, Chris.

And as someone who put himself through college working full-time managing a grocery store, your friends at Meijer are giving you a generous assesment of what really goes on.

Before the Bridge Card things were REALLY a mess.

--Nick
www.RightMichigan.com