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untanglingwebs
El Supremo
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Michigan budget: 12 highlights of Gov. Rick Snyder's proposal
By Tim Martin | tmartin4@mlive.com
on February 07, 2013 at 11:00 AM, updated February 07, 2013 at 7:17 PM
Reporters Tim Martin and Jonathan Oosting updated the budget rollout live. You can see their updates if you scroll down to the comments section below.
LANSING, MI - More money would be spent on health care for low-income residents, road repairs and public education under the budget proposal being unveiled today by Gov. Rick Snyder's administration.
Budget director John Nixon and his office said that the overall proposed budget for the fiscal year that starts in October would be $50.9 billion including all sources of money. That would be roughly a 5 percent funding increase overall compared to the current budget year, with much of that increase coming through additional road repair revenue and federal cash related to Medicaid.
Nixon told MLive.com it's a "structurally balanced" budget that helps address long-term liabilities and makes some investments in certain areas. The Legislature will take Snyder's budget proposal and make some changes, with a goal of wrapping up votes by this summer.
MLive received an overview of the budget proposal, and you can find some highlights below.
Snyder, Nixon and Lt. Gov. Brian Calley are expected to unveil more details during an 11 a.m. presentation to lawmakers. MLive reporters Tim Martin and Jonathan Oosting will be there. They will provide live updates in the comments section of this post.
1. Medicaid: Snyder called for expanding Medicaid under the Affordable Care Act on Wednesday, and he will reiterate some of those points today. He likely will face resistance from some Republican lawmakers. All the money to expand Medicaid is expected to come from the federal government for the first three years, eventually adding an estimated 470,000 Michigan residents to the program. Snyder said it "makes sense for the physical and fiscal health of Michigan" to expand the program, and he said it will save the state money. He's proposing to put some of that savings into an account to help pay the bills in future years when federal support for the program begins to decline.
2. Roads: The Snyder administration's philosophy on road repairs is to pay more now to avoid a significantly bigger bill in the future if nothing is done. That plan could face some resistance in the Legislature from lawmakers wary of raising costs on motorists. The Snyder administration says its plan likely would cost the typical Michigan family about $120 more each year per vehicle through higher fuel taxes and registration fees. The bills for driving heavy trucks and other commercial drivers also would be affected. Snyder proposed raising the state's 19-cents-per-gallon gasoline tax and 15-cents-per-gallon diesel tax to the equivalent of 33 cents for each.
3. Public education: K-12 schools, community colleges and universities would each get roughly a 2 percent overall funding increase next fiscal year. There likely will be disagreements about how the money should be allocated – including how much is tied to incentives such as "best practices" or limited tuition increases (at the higher education level). And many lawmakers, particularly Democrats, will push for more education funding than Snyder has proposed. Democrats are still angry about education funding cuts in past years.
4. Public safety: About $15 million would be added so the Michigan State Police and add a net of 107 additional troopers. The administration isn't dictating where those troopers should go – but odds are many of them could wind up in Flint, Saginaw, Detroit and Pontiac. Snyder also proposes spending about $18 million to train up to 790 corrections officers for prisons.
5. Rainy day fund: The state's main budget savings account only had $2 million in it a couple of years ago. It will top $500 million by the end of this fiscal year, and Snyder recommends adding another $75 million in the upcoming fiscal year. That's not counting some money that would be set aside in a health savings account to help pay Medicaid bills well into the future – another Snyder proposal. Also, Snyder wants to set aside $4 million in the next fiscal year for a disaster and emergency contingency fund. That could help pay for efforts related to wildfires, tornadoes and other disasters.
6. Mental health services: Snyder says the expanded Medicaid coverage should help improve funding for these programs. It also could boost mental health components for jail diversion programs and behavioral health homes. The Snyder administration says programs could include home-based mental services for children and treatment for high-risk youth. Mental health training and awareness programs could help some community groups and law enforcement agencies identify young people with mental health issues and help them find treatment. The Snyder proposal also would add about $2 million to mental health courts.
7. Skilled trades and jobs: Snyder proposes $10 million for a new skilled trades training program to "better match talent with employers' needs," according to his administration. The Michigan Economic Development Corp. would get an additional $27.5 million, including $20 million for a new debt financing program to help lenders "invest in underserved communities."
8. Prisons: The state corrections system budget would stay at about $2 billion. Some lawmakers have been frustrated that the state couldn't make significant prison spending reductions in years the inmate population declined. This fiscal year, the prison population appears to be rising again.
9. Children's health and dental care: The state's "healthy kids" dental program would be expanded to cover an additional 70,500 children in Ottawa, Ingham and Washtenaw counties – funded with $11.6 million. Currently, more than 440,000 children in 75 of Michigan's 83 counties are enrolled in the program. Snyder proposes adding $2.5 million to try and lower Michigan's infant mortality rate.
10. Social services: Snyder proposes about $6 million to expand the "Pathways to Potential" program within the Department of Human Services. It puts social workers directly into schools, a program that has started in Detroit, Pontiac, Flint and Saginaw.
11. Harbor dredging: Roughly $21.5 million – half from the state's general fund and half from a waterways fund – would be spent to help harbors keep their connections to open water. It's a key issue because of declining water levels in the Great Lakes, including record low levels in Lake Michigan and Lake Huron.
12. Natural resources and the environment: Nearly $6 million would be added to hire and train about 40 new Department of Natural Resources conservation officers. About $2.5 million would be included in the budget to help clean up leaking underground storage tanks. The Department of Environmental Quality would have $97 million next year for grants and low-interest loans to try and improve water quality in local municipalities.
MLive reporter Jonathan Oosting contributed to this report.
Email Tim Martin at tmartin4@mlive.com. Follow him on Twitter: @TimMartinMI |
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Fri Feb 08, 2013 8:19 am |
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untanglingwebs
El Supremo
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Today's Free Press states conservative lawmakers object to Snyder's proposal to expand Medicaid to include 470,000 additionl low income people under the federal expansion program. The Affordable Care Act would cover 100% of the cost of the increase through 2017 and slowly decrease that amount to 90% by 2020.
1. Medicaid: Snyder called for expanding Medicaid under the Affordable Care Act on Wednesday, and he will reiterate some of those points today. He likely will face resistance from some Republican lawmakers. All the money to expand Medicaid is expected to come from the federal government for the first three years, eventually adding an estimated 470,000 Michigan residents to the program. Snyder said it "makes sense for the physical and fiscal health of Michigan" to expand the program, and he said it will save the state money. He's proposing to put some of that savings into an account to help pay the bills in future years when federal support for the program begins to decline.
Tim Martin | tmartin4@mlive.com
A test of Gov. Snyder's ability to persuade other Republicans will be coming with the Medicaid expansion plan. Some within the GOP already are asking why the administration wants to do it. Medicaid and roads will be among the most contentious issues as the budget proposal gets reviewed. |
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Fri Feb 08, 2013 8:29 am |
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untanglingwebs
El Supremo
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2. Roads: The Snyder administration's philosophy on road repairs is to pay more now to avoid a significantly bigger bill in the future if nothing is done. That plan could face some resistance in the Legislature from lawmakers wary of raising costs on motorists. The Snyder administration says its plan likely would cost the typical Michigan family about $120 more each year per vehicle through higher fuel taxes and registration fees. The bills for driving heavy trucks and other commercial drivers also would be affected. Snyder proposed raising the state's 19-cents-per-gallon gasoline tax and 15-cents-per-gallon diesel tax to the equivalent of 33 cents for each.
Snyder's estimate of these changhes only costing the average motorist $120 per year is unrealistic. many families are seeing around $200 less in their income tax refunds because of the changes Snyder made to the tax structure,
Snyder proposes a 14 cent increase in unleaded gas and an 18 cent increase in diesel fuel. Since most everything consumers buy is trucked in, look for higher prices at the grocery store and elsewhere. |
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Fri Feb 08, 2013 8:37 am |
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untanglingwebs
El Supremo
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Because the gas tax will be tied into construction costs and fuel consumption, the gas tax can increase by 5% per year after 2016.
This will hurt those unable to purchase the newer fuel efficient models and those who communte long distances to work.
But it will help those living in cities using a new Urbanism model. That model encourages creating a pedestrian friendly inner city where people walk and bike to work. However, there will probably be an increase in the cost of public transportation to accomadate the higher fuel and registration costs.
Registration fees for large trucks and trailers will increase by 25 %. But the fees for cars and light trucks will increase by 60%. Snyder hopes to raise an additional $508 million. According to the free press, there would be an additional $74 added to the $123 registration fee for a new $25,000 car.
The Free Press also indicated there is an additional option where counties could ask taxpayers for additional registration fees o raise money for local roads or public transportation. |
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Fri Feb 08, 2013 8:53 am |
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untanglingwebs
El Supremo
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3. Public education: K-12 schools, community colleges and universities would each get roughly a 2 percent overall funding increase next fiscal year. There likely will be disagreements about how the money should be allocated – including how much is tied to incentives such as "best practices" or limited tuition increases (at the higher education level). And many lawmakers, particularly Democrats, will push for more education funding than Snyder has proposed. Democrats are still angry about education funding cuts in past years.
Yes many are still angry that Snyder made drastic cuts to schools and then gave benefits to the business community.
I think this commenter on M-live expresses it well.
Frank_Munster_707
A 2 percent increase in Education for k through 12 won't cover the increase in the rate of inflation of operation for School districts. Anything below a 5 percent increase is a token increase. Its an increase in name only! It would put the state at 1999 - 2000 Education spending levels.
chkouturmnd and paceman04 like this.
Frank_Munster_707 (to coachernie who wanted cuts)
To what end? So we can have 40 plus kids per class? So we can see more of the best and brightest who decided to be teachers leave for other states? The majority of the increase will go to cover the so called fix for the pension system! Seems their fix hasn't worked as well as they thought! The opt out rate is twice what they thought. It seems the Educators in the pension fund trust the state only to screw them more! So they are opting out as fast as they can. Can you blame them for not wanting to pay twice as much for something that is only with 25 percent of their final salary with no guarantee the state won't limit their benefits again. Benefits they have had to pay into without a choice!
Frank_Munster_707
But what he doesn't show is how it relates to the rate of inflation. The fact his Education budget is the lowest of any Great Lakes State as of this budget! That even with this budget, school districts will be asking teachers to take more cuts in pay and benefits. The state average over the first two years of Governor Snyder's time in office has been 15 percent pay cut! We will see more of the same if K through 12 doesn't see an increase above 5 percent ! |
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Fri Feb 08, 2013 9:06 am |
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untanglingwebs
El Supremo
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Snyder's budget restores fraction of funds raided from schools
MEA
Posted on 02/07/13 at 9:30pm
Gov. Rick Snyder released his proposed 2014 budget Thursday morning, and while it includes small increases in school funding, it comes nowhere close to providing local schools with the resources they need to give Michigan students they education they deserve.
Snyder's budget proposal includes the following:
Increasing the K-12 budget by 2 percent, which includes bringing the state's minimum foundation allowance to $7,000 per pupil
Doubling state funding for early childhood education
Increasing state support for public universities by 2 percent
Increasing community college funding by 2 percent, which includes more investments in skilled trades programs
Despite the small increases in funding for K-12 schools, community colleges and universities, the amount of state support provided to education is still far less than it was before Snyder took office in January 2011. In his first budget, Snyder cut K-12 funding by more than $1 billion and increased taxes on the middle-class, just to provide a $1.8 billion tax break to corporate special interests.
Snyder and the Legislature then provided an additional tax break for CEOs late last year, while replacing a fraction of what they'd previously raided from the School Aid Fund.
"Teachers and education support professionals strongly support more funding for early childhood education and additional investment in vocational training programs," MEA President Steven Cook said. "However, we are concerned that adequate funding for a quality education isn't reaching past pre-K for too many of our children, leaving them unprepared for college and the workplace."
"It wasn't long ago that the governor and his allies in the Legislature slashed K-12 funding by $1 billion while giving CEOs over $2 billion in tax breaks," Cook said. "Instead of a mere 2 percent investment, we urge our state's leaders to restore every penny taken away from our local schools, so that every child has the opportunity to succeed from preschool through college."
Lawmakers must approve a final budget by Sept. 30. |
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Fri Feb 08, 2013 9:21 am |
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untanglingwebs
El Supremo
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Snyder's budget proposal increases the per pupil amount from $3,400 to $3,625. The proposal also calls for "equity payments" for the lowest funded K-12 schools and additional increases to those schools that meet specific academic standards.
Ther will be a $100 million bond fund that universities can compete for if they produce engineering students and graduates, Programs in skilled trades can compete for $50 million in bond money.
Educators expressed concerns about communities that had to cut transportation and with poor parents may not be able to participate in some early education programs.
The concensus seems to be the increase does not make up for the cuts in recent years. |
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Fri Feb 08, 2013 9:32 am |
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untanglingwebs
El Supremo
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4. Public safety: About $15 million would be added so the Michigan State Police and add a net of 107 additional troopers. The administration isn't dictating where those troopers should go – but odds are many of them could wind up in Flint, Saginaw, Detroit and Pontiac. Snyder also proposes spending about $18 million to train up to 790 corrections officers for prisons.
Even with the Public Safety millage, Flint plans on cutting a significant number of Flint Police within 2 years. How can these new State Police begin to compete with officers who know the residents and the community? I don't agree that this is the best use of our resources. How long will the state contiinue to send troopers?
The trend has been towards closing prisons so the training of guards, so whay are we training so many guards? |
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Fri Feb 08, 2013 9:36 am |
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