LANSING – House Democrats today passed a plan that resolves the 2007 budget deficit, preventing a threatened government shutdown and protecting funding for community schools, police and fire protection, and job creation programs.
"Democrats today voted to protect our community schools from cuts, safeguard funding for police and fire protection, prevent deep cuts to health care for our most vulnerable citizens, and avert a government shutdown," said House Speaker Andy Dillon (D-Redford Twp.). "This plan will make Michigan stronger and positions us to continue working on the 2008 budget. We've made tremendous strides in fixing Michigan's unprecedented budget crisis and getting Michigan's economy back on track."
The plan to resolve Michigan's immediate $803.2 million budget deficit:
- Cuts $317 million from the state budget while preserving funding for K-12 education, health care, and police and fire protection.
- Allows for the use of one-time funds from the tobacco settlement proceeds and the Higher Education Loan Authority.
- Eliminates "double-dipping" for retired public education employees by requiring them to freeze their pensions if they come back to work for the state.
- Facilitates consolidation of local government services.
- Requires government audits to streamline spending and save taxpayer dollars.
"This is a tremendous victory for the people of Michigan, but the work isn't over yet," Dillon said. "Although we've resolved the 2007 budget, we still have a lot of work to do to get next year's budget sorted out. In the end, we will have a leaner, stronger Michigan that is a great place to live, work and raise a family."