The Legislature will get back to work this week. Michigan Radio's Political Analyst Jack Lessenberry has been thinking about what they're going to be dealing with.
You may not have noticed they were gone...but the Michigan Legislature returns today after a two-week vacation, to again tackle the problem of balancing the state budget.
If that sounds boring, hang on a minute. We're not just talking about your money but what you may have to lose. Quality education, a potential college scholarship, better public safety.
You are likely to have to give up something you were counting on, or get less of it, or pay more. Or maybe all those things put together. Here's the problem.
Whatever the lawmakers say about tightening belts, every year they are tempted to spend more than they take in. Nobody wants to pay more taxes. But everybody wants more services.
This year, things are really difficult. Thanks to the Great Recession, which is worse in Michigan than elsewhere, the state has far less money than before. The constitution says our lawmakers have to balance the budget. And for the fiscal year starting Oct. 1, it looks like the state will have at least $1.5 billion less than it had planned on spending. How do they resolve that enormous difference? There are only three ways. First, it is clear that they will make some cuts -- they are just fighting over how much and where to cut. Next, the legislators will dip into the $2.5 billion in federal stimulus money Michigan has left.
They are just fighting over how much to use now and how much to save for next year. And, finally, despite denying this now, they are likely to get more money by increasing taxes and fees.
The process won't be pretty and, once it's done, they will have to start doing this all over again for next year. That might be stimulating, if you are a hamster on an exercise wheel.
But I think they are going about it entirely wrong. The legislators need to try something like zero-based budgeting instead.
That is to say, they need to begin by making a list of the services Michigan needs to provide in this time of economic difficulty. They need to decide just what this state needs to do for its citizens in order to be properly functioning and competitive.
Then, they need to figure out what that all will cost, and find a way to pay for it that does as little damage as possible. That's how we do our household accounts, at least if we are rational.
We could pay slightly less taxes if we stopped providing our children with a decent education, but in the long run that wouldn't be worth it. Our lawmakers need to figure out what our priorities are, and how to pay for them. They also need to figure out how the state can get the money it needs in the long run. The stimulus will vanish after next year, and Michigan may have even greater needs than now.
That's it in a nutshell. And while our lawmakers are bound to have different ideas about what to do, they need to start by admitting what the challenge is. Then, if they can come up with a solution, they will have more than earned their money.
Jack -
Zero-based budgeting, omnibus budgeting, and Price of Government-style reorganizations are nothing but gimmicks. The only difference that will be made will be wearing out the House and Senate Fiscal Agencies and State Budget Office to achieve a near-identical document sorted a bit differently. Basic programs and staff don't change from year to year; only a few offices or divisions might be yanked in such an exercise, and certainly not enough to justify completely wrecking what little remains of the working budget process.
The real problem is the lack of leadership and the inability of the Legislature to put on its big boy/girl pants and either jack up taxes or hack out their own favorite programs. Can we please end term limits, now?
Posted by: A Lansing wonk | July 13, 2009 at 09:23 PM