Thursday, March 15, 2007

Budget Talking Points

The Governor has proposed a package of revenue enhancements and budget cuts to balance the budget for this year and into the future. Below are some talking points to support the Governor’s proposal.

• The governor’s budget proposals provide the right balance between investment, budget cuts, reforms and revenue increases. It is a package that MEA supports.

• Gov. Granholm’s vow to invest in education and her refusal to make mid-year cuts reinforce what MEA members have believed for years: an investment in education is an investment in Michigan’s economic future. It shows our students – and every other Michigan citizen – that education is the foundation of our economic plan. Education today will lead to jobs tomorrow.

• Education has suffered enough cuts. Additional cuts will mean even larger class sizes, fewer critical educational programs and further reductions in the number of qualified staff to help students achieve.

• Since 1994 when Proposal A was adopted, the Legislature has enacted some $3 billion in tax cuts, always with the promise that these tax cuts would result in economic development, job growth and a healthier, more diverse economy. Obviously is hasn’t worked

• The $3 billion of tax cuts has resulted in an enormous structural budget deficit. For four years K-12 has taken hits every year while higher education has had huge reductions over the past five years. It is time for the Legislature to step up and find sufficient revenue to provide the education that will be the engine of growth for the future.

• If the governor’s budget package is not enacted by this spring, the future of public education in Michigan is doomed. Legislators must solve our state’s financial crisis now – and not leave it for future lawmakers to fix.

• The Michigan economy now depends more on services than on manufacturing. We must look to the service industry to generate more revenue. The new 2-cent tax on services is set up to do just that.

• The proposed Michigan Business Tax includes a tax break for Michigan businesses to help offset increases they would experience under the 2-cent service tax.