LANSING – With today's announcement by the state's fiscal agencies that Michigan's deficit for 2007 has grown by $195.3 million since January, House Speaker Andy Dillon (D-Redford Twp.) called on members of both parties and both chambers of the Legislature to work together to resolve Michigan's unprecedented budget crisis.
"The leaders of our state must work together to break the cycle of deficit that plagues Michigan year after year," Dillon said. "The days of passing one-party solutions are over. Michigan is in crisis. Democrats and Republicans in the House and Senate must work together to resolve this crisis for this year and 2008. We need more than one-time fixes – we need a comprehensive plan to get Michigan on the road to economic recovery."
Michigan's deficit for the remainder of fiscal year 2007 now stands at $803.2 million, according to figures announced at the state's revenue-estimating conference held today. The increase in the deficit of $195.3 million since January includes $152.8 million for the School Aid Fund and $42.5 million for the state's General Fund.
For fiscal year 2008, the projected budget hole grew by $338.2 million since January, of which $247.9 million comes from the School Aid Fund and $90.3 million from the General Fund. With the Single Business Tax (SBT) due to expire at the end of the year, Michigan faces an overall deficit of more than $3 billion in 2008. If the SBT is replaced with a revenue-neutral plan, such as the House Democrats' proposed Michigan Business Tax, the state faces a deficit of $1.8 billion in 2008.
"Michigan has gone from budget crisis to budget crisis for far too long," Dillon said. "It's time to put politics aside and get down to the work of fixing Michigan's budget. The people of Michigan expect their elected officials to work together for their common good. We must do what's right for the people who sent us to Lansing to make Michigan a better place."
The revenue-estimating conference is put on by the House Fiscal Agency, the Senate Fiscal Agency and the Michigan Department of Treasury.