by Gongwer News Service
August 21, 2009

A senior official in Governor Jennifer Granholm’s administration said recently that when people ask if the budget is soup yet, the reply is: “It’s not even liquid yet.”

That as much as anything seems to sum up the state of discussions on the 2009-10 fiscal year budget: ongoing, but going where? Ms. Granholm, Budget Director Bob Emerson and the legislative leadership meet, sometimes, but there is no sense of progress. Senate Minority Leader Mike Prusi (D-Ishpeming) said late last week the budget talks were stalled. Senate Majority Leader Mike Bishop (R-Rochester) charged that Ms. Granholm and Democrats were attempting the same tactics tried in 2007 (prior to a four-hour shutdown of government).

The administration is not discussing publicly the discussions, but at a press conference this week Ms. Granholm said a budget would be completed before the October 1 start to the fiscal year, and that that budget would include additional revenues. Though from where those revenues would derive is as yet unknown.

There is clearly a growing sense of unease about the 2009-10 budget, as reflected this week in the press conferences called. With the legislature actually in session for the first time in a month, advocates took advantage of arguing their case.

There was a report on the financial sacrifices state workers have already taken, a response in part to House Speaker Andy Dillon’s call for a single health care plan for all public employees, but also a type of plea to lawmakers not to fashion more cuts affecting them.

Supporters of Michigan’s relatively new film tax credit took to the Capitol lawn to warn against cuts to it. Mental health advocates warned that more people will suffer if cuts are made.

And prison guards warned against layoffs by encouraging the legislature to grant an early retirement program for them, which would help ensure more guards aren’t laid off.

Because Michigan’s fiscal year begins so much later than most states’, it is starting to get the unenviable position of gaining national attention on its budget situation. As far as state finances go, right now we are the only show on the circuit. This week the Toledo Blade (which does have a substantial circulation in Monroe and Lenawee counties, but is still an out-of-state paper) said editorially that a government shutdown is growing more likely.

In early July, all the states with budget problems, and those that actually had shutdowns, were able to hide somewhat in the crowd. Leading that crowd in terms of fiscal messes was California, with its demon beast deficit from hell that made Michigan’s estimated $2.8-billion deficit almost seem trivial.

Ah, but $2.8 billion is anything but trivial, and that is one — no actually, it’s the only — reason why the lack of any kind of positive news on the budget negotiations is angering and scaring the life out of some organizations.

One would think this situation could have long-term political consequences, in terms of the public ordering structural changes to state government. With a con-con vote scheduled for the 2010 election, that may yet be indicated.

But November 2010 is a long time away. October 1, 2009, is much closer, and a whole lot of people want to hear something positive about that date.

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