LANSING – Staving off a potentially devastating government shutdown, House Democrats today put Michigan on the road to recovery by passing a bold plan to solve our state's unprecedented fiscal crisis. The budget plan, which covers the fiscal year beginning Oct. 1, is a mix of cuts, reforms and revenues that protects funding for vital services and gets Michigan's economy back on track.
"With a government shutdown only hours away, we did what was best for the people of Michigan: We passed a continuation budget that will avert a state shutdown, and we passed a comprehensive solution to the budget crisis that invests in our state's future," said House Speaker Andy Dillon (D-Redford Twp.). "The Senate's proposed cuts would have devastated seniors, children, law enforcement and our veterans, which is why we couldn't support them. Our plan instead makes common-sense cuts and reforms, and it raises much-needed revenue. I urge Senator Mike Bishop and his fellow senators to approve this plan so we can get Michigan back on the road to recovery."
House Democrats have said from the beginning that a budget solution would have to include a sensible mix of cuts, reforms and revenues. The plan that passed today will give the state a long-term savings of hundreds of millions through cuts and reforms. Some of the cuts and reforms include cutting lawmakers' salaries, eliminating free lifetime health care benefits for lawmakers and eliminating double-dipping for retired state workers who come back to work for the state. The plan also contains provisions for a continuation budget, which will halt a state government shutdown until the Senate approves the final budget.
"These are the cuts and reforms Michigan needs to fix the structural problems that have left our state in perpetual fiscal crisis," said Majority Floor Leader Steve Tobocman (D-Detroit). "Today, the buck stopped in the Michigan House. It's now up to the Senate to make the choice to invest in Michigan's future."