LANSING – House Democrats today announced more than $275 million in cuts that will help balance the state's budget for the remainder of 2007 while protecting vital funding for health care, police and fire protection, and job creation programs.
"With Michigan in the midst of an unprecedented fiscal crisis, we have said from the beginning that cuts and reforms would come first in trying to balance the state budget," said House Speaker Andy Dillon (D-Redford Township). "We have gone through the budget with a fine-tooth comb and we have made tough choices. Some of those choices will be painful. They might be unpopular, but we are doing what's necessary to balance our budget and protect vital services like health care and public safety."
Michigan's general fund is facing a $332 million shortfall for the current fiscal year, which ends on Sept. 30. Next year's budget deficit threatens to reach $3 billion or more.
House Democrats were able to slash more than
$275 million from the budget by forcing executive government
agencies, such as the Office of the Attorney General, the Legislature and Judiciary, to further cut spending. The plan
also will increase revenues for the state by closing tax loopholes for big oil companies and others. Lawmakers will next
focus on reforms to further streamline government spending.
The House plan, unlike the Senate plan, drew the line at slashing funding for public health programs. The Senate has proposed cutting funding for immunizations for children from low-income families, Alzheimer's and cancer research, maternity and infant care, nursing home care, and day care for children, among many other programs. The Senate plan also cuts 10 percent in revenue-sharing dollars to local communities that equates to the loss of more than 600 police and firefighters throughout the state. The Senate's plan also makes cuts that cost the state about $100 million in federal matching dollars.
"I refuse to balance the budget on the backs of our most vulnerable citizens – our children and seniors," Dillon said. "Protecting health care, police and fire services, and job creation programs is not negotiable. We have to lead by example and share in the pain. Our plan slashes funding to all branches of government, so we can protect public safety, health care and job creation. We call on people in both parties to support our plan and move Michigan forward."