APRIL BUDGET CRISIS SUMMARY from the LAC
We are at a critical time in Michigan. The state budget has been cut by $3 billion in the past seven years. The 2007 General Fund revenues are lower than those in 1996. The state's reserves are used up and almost $7 billion in one-time resources have been exhausted. For fiscal year 2007, the General Fund will have a shortfall in revenues of $607 million and the School Aid Fund will see a revenue shortage of $377 million. Facing a nearly $1 billion in revenues shortfall, our legislators and governor have the responsibility of balancing the state budget. The Single Business Tax must also be replaced or leave a $1.9 billion hole in the General Fund revenues for fiscal year 2008 and beyond. READ MORE TO LEARN HOW YOU CAN HELP!
The reasons for the loss of revenues are both cyclical and structural in nature. The cyclical can be contributed to a downturn in the economy. The structural can be contributed to changes made to Proposal A after it was voted in by the people in 1993. The revenue structure that supported Proposal A was weakened by the reduction of the state personal income tax in 1999, tax exemptions on certain goods that were originally taxed under Proposal A, along with other factors.
We are urging the City community to contact legislators and give your opinion on the governor's plan to balance the budget. A component of the plan is the two percent tax on services. Currently in Michigan, 26 services are taxed. The governor's plan identifies 168 services to be taxed. The service industry in Michigan is growing fast, while the goods industry is shrinking. The two cent tax would tap into the growing services industry to bring in revenue. Currently, the governor's plan is the only one on the table. The legislators need to know if we would support the two cent tax or other tax increases to bring in revenue. The increase in revenue would help provide vital services throughout the state. At present, vital services face continual cuts.
You may think that writing the legislators will not make a difference. However, members of the City PTSA Legislative Committee have heard legislators at the Michigan PTSA Advocacy Day and the KISD Grassroots Legislative meetings ask for citizens to write to them and let them know what they support. They do want to hear from you.
In our school district, almost $60 million has been cut from the operating expenses budget since 1999. This school year, all school districts face a possible pro-ration cut of $224 per pupil because of the state revenues shortfall! Since the year 2000, the School Aid fund has had a growth of only 1.9%, which is below the rate of inflation. Now is the time to let legislators know this is not acceptable. Funding of schools must be reliable, sufficient and equal. We must let our legislators know disparities in funding between schools are unacceptable. In Michigan, there is one district that receives over $14,000 per student when all monies are counted. This district has 3% of its students qualify for free and reduced lunch. The ratio of teacher to students in this district is 17/1. Another district that has 80% of its students qualify for free and reduced lunch and has a teacher to students ratio of 29/1 gets $6000 less per student when all funds are calculated. This is not fair and equal funding. If all students in the state are considered equal to meet the new high school graduation requirements, the per pupil funding should reflect that equality. If one district in the state needs over $14000 to educate an individual student, don't all the districts need the same amount?
Below, you will find a list of legislators. Writing your own legislators is good, but remember the vote of each legislator affects your life directly as critical decisions are made in Lansing. Sending each one your own personal “form letter” will let legislators know the opinion of people across the state. Please contact them and respectfully give them your support as they look to every possible way to increase revenues.
SIKKEMA, KEN
STATE SENATOR, 28TH SENATORIAL DISTRICT
Work (800) 774-1174
E-Mail: senksikkema@senate.michigan.gov
HARDIMAN, BILL
STATE SENATOR 29TH SENATORIAL DISTRICT
Work (866) 305-2129
E-Mail: senbhardiman@senate.michigan.gov
STEIL JR, GLENN
STATE REPRESENTATIVE, 72ND REPRESENTATIVE DISTRICT
Work (877) 727-8345
E-Mail: glennsteil@house.state.mi.us
PEARCE, TOM
STATE REPRESENTATIVE, 73RD REPRESENTATIVE DISTRICT
Work (888) 414-3684
E-Mail: tompearce@house.mi.gov
VAN REGENMORTER, WILLIAM
STATE REPRESENTATIVE, 74TH REPRESENTATIVE DISTRICT
Work (800) 968-2320
E-Mail: wmvanreg@house.mi.gov
KOOIMAN, JERRY
STATE REPRESENTATIVE, 75TH REPRESENTATIVE DISTRICT
Work (800) 875-2154
E-Mail: jerrykooiman@house.mi.gov
SAK, MICHAEL
STATE REPRESENTATIVE, 76TH REPRESENTATIVE DISTRICT
Work (888) 797-0076
E-Mail: representativesak@house.mi.gov
GREEN, KEVIN
STATE REPRESENTATIVE, 77TH REPRESENTATIVE DISTRICT
Work (866) 538-4677
E-Mail: kevingreen@house.mi.gov
HILDENBRAND, DAVE
STATE REPRESENTATIVE, 86TH REPRESENTATIVE DISTRICT
Work (877) 328-3086
E-Mail: rephildenbrand@house.mi.gov