It's not just the Economy...

The beat goes on…the State budget deficit now looks to be over 2 billion dollars and counting. Every revenue hearing produces a bigger number, while the adjusted projections from the last hearing lay on the floor. Where will the deficit end up? How much red-ink will there be. No one seems to know…

Many of our elected officials feel the best way to resolve this issue is cut, cut, cut. While it is reasonable to review each expenditure and be sure we are getting the best value for the investment of our tax dollars, there comes a time, when we have to ask…where’s the revenue?

Michigan is facing a “structural” deficit. The things we tax, the amounts we tax and the way we tax does not provide what is necessary for the state to operate. While we may have bigger problems because of the down-turn in our auto industry dependant economy, we would still face budget problems if GM, Ford and Chrysler were still doing well. It is too easy to blame our lack of revenue on this global economic adjustment.

So where’s the money? How do we increase revenue in a fair and equitable way, keep Michigan competitive, and be sure we are in line with the other 49 states? We do not want to be the outliers, the only ones who tax this or that service, or have exorbitant rates. This makes no sense, when we want to encourage more business and jobs in the state.

The Michigan League for Human Services testified earlier this summer at a hearing in Lansing and offered some excellent options. We may or may not all agree on these options, but they need to be considered. You can learn more by following the link below…if you like some of these ideas, advocate for them with your legislator, and do it now!

http://www.milhs.org/Media/EDocs/BudgetDeficitsWEB.doc