LANSING – With support from State Representative Lee Gonzales (D-Flint Township), House Democrats late Tuesday 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.
"As our state struggles to resolve this unprecedented budget crisis, we must first streamline and reform government services," Gonzales said. "My Democratic colleagues and I have gone through the budget with a fine-tooth comb. Some of the choices we have to make are painful, and possibly unpopular. However, the leaders of our state have to stand up and do what's necessary to balance our budget while protecting vital services like health care and public safety. That's what my fellow House Democrats and I have done."
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 will not balance the budget on the backs of our most vulnerable citizens – our children and seniors," Gonzales said. "I refuse to slash health care, police and fire services, and the job creation programs that are going to turn our state around. Our plan slashes funding to all branches of government, ensuring that legislators share in the sacrifice. I hope that lawmakers in both parties will support our plan and help move Michigan forward."