State budget balanced without raising taxes - Senate votes no on governor's $1.5 billion tax plan
LANSING - Senate Majority Leader Mike Bishop and Senate colleagues Thursday took the first step in working to solve the state's $942 million budget deficit and voting down the governor's tax increase.
"Today, the Senate showed bold leadership and a commitment to helping Michigan regain its financial footing. We accomplished a resolution to the 2007 budget deficit without asking Michigan families and job providers to shoulder the burden of the governor's $1.5 billion tax increase," said Bishop, R-Rochester. "Balancing the state's '07 budget deficit without asking residents and businesses to pay more will require all of us to make painful sacrifices, but we believe it's the right action to take. The budget solution we've put forth looks out for the long-term interests of the people of Michigan."
The governor's executive order was accepted this afternoon which still left the state with a $600 million hole in the budget. New legislation was offered that outlines numerous spending reductions in the budget to address the FY 2007 budget gap.
"As promised, we were able to balance the 2007 budget without raising taxes," said Randy Richardville, R-Monroe. "The Senate took responsibility to keep taxes under control so as not to penalize families and businesses that are already struggling to make ends meet."
Details of the new proposal include:
* Reducing government - The size of state government will be reduced, starting with a 4-percent cut to the Michigan Legislature's budget, as well as a 4-percent reduction to most state departments.
* Protecting public safety - Funds were found that will prevent state police trooper layoffs and stopped the closure of our prisons and the potential release of more than 5,000 convicted felons.
* Keeping education a top priority - The School Aid Fund will be preserved by recommending a modest per pupil decrease of $34 - less than half of one percent of the total foundation allowance, while maintaining funding for essential services such as, assistance for schools with declining enrollment, programs for at-risk students, and adult education.
* Looks out for Michigan families and job providers - The proposal will not ask Michigan businesses and families to carry the burden of the governor's proposed $1.5 billion tax increase to solve a $942 million budget deficit. We balanced the FY 2007 budget without raising taxes.
Posted: Friday, March 23, 2007
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