Twelve Quick Facts about Michigan Government

Did you know? Our state's government is the smallest it has been since the early 1970s. Adjusted for inflation, revenues are at the level they were back in 1964. We are $9 billion in spending below the Headlee Amendment limits. Michigan has 11,000 fewer state employees than we had only a few years ago, and our state now has a lower number of employees per citizen than 44 other states.

Here are twelve quick facts about our state government in light of the recently passed budget for 2010:

• State government is the smallest it’s been since the early 1970s.
• Adjusted for inflation, state revenues are at the level they were in 1964.
• Michigan is $9 billion below the spending limit imposed by the Headlee amendment to the state constitution.
• Governor Granholm has cut more out of state government than any governor in history - more than $10 billion in deficits have been resolved since 2003. The governor has sold off airplanes, car fleets and state property, and eliminated state boards, agencies and commissions.
• From 2001 to 2008, the size of the state workforce decreased by more than 11,000.
• Michigan has a lower number of state and local employees per capita than 44 other states.
• Department of Human Services workers who assist needy families have caseloads of 600 to 900 per worker. The fiscal year 2010 budget cuts 300 more employees from DHS.
• Cuts in revenue sharing over the past eight years have caused the layoffs of more than 2,400 police officers and 1,800 fire fighters across the state.
• Among states levying individual incomes taxes, Michigan’s flat tax rate of 4.35% ranks 38th.
• Michigan’s state/local tax burden percentage of 9.4% of income ranks 27th highest nationally, below the national average of 9.7%.
• In the last eight years, real wage growth for state employees has been very close to zero, and state employees are paying more for their health care and retirement benefits. State employee concessions total in the hundreds of millions of dollars.
• Since the start of Governor Granholm’s administration in 2003, $2.8 billion has been saved in areas such as contracts, lease/rent reduction, mail, fleet reductions, retirement savings, self-insurance rate reduction, project management, retirement savings and surplus property sales.

To avert a government shutdown, the governor recently signed the final bills that put the 2010 Michigan budget in place. This is the budget we have, but it is not the budget we need. It is a budget that the governor does not agree with and does not support. It makes cuts that are too deep and too painful for our kids, for students trying to go to college, for people trying to keep their families healthy, and for keeping our communities safe.

Because Republican leadership has been adamant in refusing to pass a budget this year that invests in people, the economy and jobs, and protects people, vetoing this budget would only cause more pain. So, to keep government, universities, and our police and fire departments running, the governor signed the budget bills.

Investing in our children, in their education, in preparing for the needs of the new economy, keeping our communities safe - these are the most pressing priorities for our state and this budget cuts too deeply into them. Although the budget is signed, the fight is not over.

In the end, the Republican-controlled Senate decided that it was more important to support corporate loopholes over public education. They chose to protect tax breaks for oil companies rather than help parents send their kids to college. They chose to protect tobacco companies rather than school budgets.

They will support oil companies who get a double deduction in the tax code, over making them pay their fair share to help fund police officers or fire fighters.

The Republicans have made clear that schoolchildren, public safety, and college students are not their priorities and are unwilling to fight for them. Governor Granholm has, and will continue to do so.