*The Democrats must vote with us to pass our list of reforms to reduce
government spending, and deliver millions of dollars in savings for
Michigan taxpayers;
*The governor must exercise her executive authority and halt the state
employee pay raise scheduled to take place this September.
*The governor must immediately negotiate at least $300 million in wage
concessions and or other state departmental reforms. (The governor's
recent letter states she will cut $300 million in new programs - but
these programs don't exist. They were only announced in her State of
State address.)
*If a tax increase is still necessary after the reforms have been
passed, then any increase offered by House Democrats must be adjusted
to reflect the savings from the reforms.
"Until the House and the Governor can agree with us and accomplish
these needed spending reforms, Senate Republicans will continue to
stand strong and not allow a vote on a tax increase to take place.
"State government does not have a taxing problem, it has a spending
problem. Higher taxation without significant reform will only result
in more bloated state government and a weakened economy. State
leaders have a responsibility to set our state on a path to economic
revival and prosperity. Senate Republicans understand that a tax
increase won't get us there."
A LIST OF PROPOSED SENATE REPUBLICAN REFORMS FOLLOWS
Senate Republicans
Government and Budget Reforms
Criteria for the first wave of reforms:
No New Programs
Reduce 2008 spending targets to 2007 levels
*More money in the classroom through education reforms.
*Labor and wage concessions from public employees or on public
projects when Michigan's unemployment rate exceeds the national rate
by more than 20 percent.
*Cost reductions in the three main budget areas growing the most and
representing more then 60 percent of the total budget. (Corrections,
Medicaid, and Human Services)
State Budget and Other Reforms Targeted at Major Cost Drivers --
ESTIMATED SAVINGS $569 MILLION ANNUALLY
*Freeze earned income tax credit set to take effect in '08: est.
annual savings of $120 million
*Reform eligibility and work requirements in welfare to be more in
line with our surrounding states and the national average: est. annual
savings of $30 million.
*Medicaid reform: est. annual savings of $60million.
*Prison reforms (aside from employee wage concessions): est. annual
savings of $200 million from targeted privatization and reforms to
address recidivism.
*Agree to suspend prevailing wage on all public projects when our
employment rate exceeds 20% of the national average: est. savings of
$150 million.
Local Government and School Reforms - ESTIMATED SAVINGS $220 MILLION
*Public employee healthcare reform: est. annual savings of $157
million annually.
*Teacher retirement reforms: est. annual savings of $60 million
- Senate passed
*Common school calendar to allow greater cost and service sharing
within an intermediate school district.
Things only the Governor can do under her Executive Authority, but
hasn't and won't agree to - ESTIMATED SAVINGS $362 MILLION
*Consolidate Departments- HAL/DIT/DNR/DEQ: est. annual savings
$3million if consolidated
*Suspend state worker raises for '08: est. savings $109 million.
*Seek wage concessions in corrections to bring us inline with the
national average instead of releasing felons: est. annual savings $150
million. |
