Budget Solutions

The financial crisis for state government in Michigan calls for real reforms—a more transparent and accountable government and a modernized and fair tax system.  Government services need to be radically restructured.  This will account for some savings to the state budget. 

Mike Bishop, the Senate Majority Leader, was recently quoted in the Washington Post (10/5/2009), saying: “Michigan workers are making too much money”.  Bishop blamed the high wages for the economic struggles in Michigan and that those wages are sending “so many negative vibes.”  It is quite the opposite.  It is the loss of good paying jobs for Michigan workers, which has greatly contributed to the state’s economic struggles.   

Progress Michigan outlines a Better Michigan Future plan which calls on the Legislature and Governor to:

• Conduct performance audits on government contracts and departments for efficiencies—ensuring Michigan taxpayers are getting the most value for their dollar.
• Eliminate tax incentives for companies failing to create and retain jobs and close tax loopholes, while requiring yearly performance reviews for all remaining tax credits and incentives. This will save our state over $600 Million per year, with increased savings in the following years.
• Make government contracts more accessible through a centralized, online database for citizen review.
• Where possible, consolidate services and bulk purchasing to maximize cost savings.
• Require elected officials to publicly disclose all of their financial assets and ban them from voting on legislation from which they could financially benefit.
• Enact reforms to crack down on pay-to-play politics and no-bid contracts.
• End lifetime benefits for lawmakers
• Reform our tax and fee structure in a way that reduces federal tax liability for Michigan citizens and ends our status as a 'donor state'.
• Implement a graduated income tax—securing a tax cut for up to 90% of Michigan citizens—by adjusting our tax base and more fairly distributing the tax burden. The legislature must act immediately to put this option before the voters.
• Expand the state's sales tax to include luxury and non-essential services, which would generate as much as $1.65 billion in new revenue for the state, with growth potential as the state's economy rebounds.  This expansion would not include business-to-business, healthcare, legal, or childcare services.
• Reform Michigan’s tax code to enable collection of taxes on estates over $2 million by that are now collected by the federal government—generating $160 million per year in revenue for our state.