Budget Process Needs Cooperation Among Legislators and Input from Citizens

By State Senator Gilda Z. Jacobs
Monday, November 9, 2009

With Governor Granholm’s signature on the final bills, we now have a state budget that few legislators or citizens are happy with. Work on the 2009-2010 Fiscal Year Budget was difficult and frustrating. The final product left us with unfortunate cuts to programs that are crucial to our communities and citizens, and there is no agreement to find new revenues for these programs.

I believe that we can and must do better with the state’s budget. If legislators can work together, and if we include the people of Michigan in the process, then I believe that we can avoid a divisive and frustrating budget battle and make better decisions about programs and funding.

Our current tax structure is the “elephant in the room” in our budget discussions. As we have seen in nearly every month in 2009, tax revenues are down because of our stressed economy and people cutting back on everything but the essentials. If we want to avoid budget battles and shutdowns in the future, then I believe our first step should be a critical look at how and what we tax.

Michigan’s economy has changed. We can no longer rely on manufacturing to shore up our state’s tax base. Our auto companies and our factories have all had to become leaner and meaner to survive in the present United States, and world, economy. Michigan needs a tax system that will grow as this new economy grows.

We need a tax system for a new economy so that state government has the money needed for the state programs people want. And we need input from Michigan taxpayers on what that tax system should look like. Over the past year a number of ideas have been thrown into the ring for people to consider. We’ve heard people argue for a graduated income tax, a tax on more services, a lower business tax, or no business tax at all. It’s time that we seriously look at the options and decide what is best for the future of our state and our families.

This year I have been out in the community talking with people about our antiquated tax structure, explaining how it works, and listening to their ideas on how we might fix it. If you have ideas you would like to share with me, please do so by e-mailing me at SenGJacobs@Senate.Michigan.Gov or dropping a note to me at P.O. Box 30036, Lansing, MI, 48909-7536

It is time for new ideas. We need creative thinking “outside the box” as we decide what we want Michigan to look like for future generations. The stability of our economy, our quality of life, and an improved economic climate depends on our decisions today. Please help be part of the solution by providing your suggestions on how to build a better Michigan.

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Senator Gilda Jacobs represents the 14th Senate District. She can be reached toll-free in Lansing at 1-888-937-4453. Visit her website at http://www.senate.mi.gov/jacobs/