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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    With a $1.8 billion budget hole why are we still burning money?


    By Nick, Section News
    Posted on Tue Jun 12, 2007 at 07:50:40 AM EST
    Tags: (all tags)

    The House and Senate return to session today and subscription only MIRS is reporting they're pretty darn close to an SBT replacement.  They've been targeting July 1 to give Treasury and business owners a full six months to prepare for the new tax structure and could start moving bills through each chamber by the end of next week.  

    The latest sticking point as I've understood it centered around an eventual phase-out of the personal property tax, a move that would leave small businesses paying a larger share of the state's tax burden than large manufacturers.  But even that seems to be close to a resolution.  And the sooner the better... that $1.8 billion FY2008 budget deficit isn't getting any smaller.  Though it could, if the governor would just act.

    Yesterday Senate Majority Leader Mike Bishop sat down with the editorial board at the Detroit Free Press and discussed the current negotiations and opportunities for savings through some awfully common sense reforms.  Elimination of MESSA's monopoly on teacher healthcare benefits came up, and that particular item seems to be one of the areas where there's finally some bipartisan agreement (refreshing since as far back as I can remember personally (including the time I spent in the House in 05) and likely much further back than that the GOP has tried to resolve the issue and consistently been blocked by legislative Democrats and Governor Granholm).  So too did opportunities for Granholm to get some things done without legislative approval.  According to the FREEP:

    Senate Majority Leader Mike Bishop... said if he were governor he would seek renegotiation of the 4% raise the state's 52,000 employees are scheduled to receive in the fiscal year that begins Oct. 1.

    I'd have an immediate hiring freeze, and I'd have an immediate travel freeze. The executive branch was reimbursed $3.1 million last year for mileage. That's about 13 times what the legislative and judicial branch were reimbursed altogether. I would immediately renegotiate 4% employee salary increases. Then look at every single insurance policy, and every single contract, to see if there's a way to save money. ... I would be on the floor of each chamber, looking at members in the eye, telling them why I believe what I believed. I would not be shy in the legislative process, in making sure the job got done.

    See, now maybe it's just me, but that seems like the easy stuff.  In fact, I'm still a little surprised (I know I shouldn't be) that it hasn't been done yet.  We're cutting billions (with a B) from the budget this year after dealing with nearly a billion (with a B) dollar deficit last year and we're still going to give raises to state employees?  

    Read on...

    Now don't get me wrong, I'm not bashing state employees.  I think there are entirely too many of them but that's a reflection on the fact I think there are entirely too many departments and bureaucracies and agencies trying to do for Michigan residents what Michigan residents are more than capable of doing for themselves or of contracting out to the private sector at a much better price.  

    But c'mon, raises?  Right now?  Four percent is a small number, I know, but in a state where employees are regularly taking pay CUTS just to keep their jobs a half percent is probably unreasonable.  And when ignore the percentage and look at it in terms of actual dollars?  Suddenly you're not talking four, you're talking 109.9 million.  Dollars.  A year.  Is this the time to give government employees a $110 million raise?  Probably not.

    So what's stopping the state from acting?  Legislatively it'd have required a 2/3 vote to cancel the pay increase.  That wasn't going to happen with all of the State Reps and Senators the UAW (the state's largest employee union) has in their pockets.  The other option?  The chief executive has the ability to call for concessions and get something done.  Then again, that would require leadership.  Even on the easy stuff that's not easy.

    And speaking of the easy stuff, we discussed the LSJ's coverage of the new MSP HQ project yesterday and the LSJ is editorializing on it today:

    The so-called Triangle project - named for the parcel of land involved - is long in development and short in wisdom. At the 11th hour, the state still can say no. It has enough reasons to do so.
    Start with price. As detailed in the LSJ Monday, moving the State Police downtown will be costly - $45.2 million over an 11-year period, according to a state analysis.

    When you adjust the cash to recognize needed repairs at the old digs during that same time period we're still talking a $6 million investment the state's making that it just plain doesn't have to.  Props to the LSJ for keeping the administration's feet to the fire on this one.  That paper's just full of surprises these days.

    Now, on to the tougher stuff.  One of the favorite tricks of the lefties and the taxocrats is to look at a $42 billion budget and to insist that there's nothing we can do about $33 some odd billion of it.  That it's non discretionary... nothing you can do.  There's some sort of cosmic phenomenon that no one's properly identified that actually exerts it's will on that many tax dollars every fiscal year.  In fact, if anyone TRIED to touch those dollars they'd be stricken down where they stand like they'd reached up and laid their hands on the Ark of the Covenant of something (obscure Bible reference I know... go to church).

    The Elliot Ness of budget line items is Medicaid spending but, low and behold, Senator Tom George has a few ideas on how we could actually... wait for it... REFORM the way we do things to not only save taxpayers some cash but to also improve the health and well being of those who find themselves receiving the service.  As the Detroit News reports:

    Michigan has a health maintenance organization system for its Medicaid program that was supposed to help contain costs, but it hasn't worked. Part of the reason is that Michigan is more generous in the benefits it provides than federal rules demand and than many other states offer.

    Its Medicaid program covers nonmandated services, such as chiropractic care and podiatry services, as well as a host of others...

    The state should also adopt legislation -- common in most other states -- that requires the elderly to pay for their nursing care if they have the means and prevents them from signing over assets to their heirs to qualify for Medicaid benefits.

    Cutting reimbursement rates or taxing all doctors, as the governor suggested, isn't reform.

    George also wants to incentivize healthier lifestyles, offering added benefits for mothers who seek proper prenatal care, for instance.  And there's the always the obvious, demanding that those whose healthcare the state supplies do not engage in activities that put their health directly and critically at risk.  Smoking for instance.  

    Whether it's in a car or a home or a restaurant.  Well, as long as smoking's still legal in restaurants.

    The Associated Press tells us this morning that Dems in Lansing don't think the free market's such a good thing when there's a chance to determine themselves how people live.  They're looking to ban smoking from bars and restaurants citing the inherent health risks associated with second hand smoke but ignoring the fact that in the last few years smokefree restaurants and bars have sprung up just about everywhere, nearly doubling in the last decade.

    The Democratic-sponsored legislation is opposed by the Michigan Restaurant Association and Michigan Licensed Beverage Association, which say eateries and bars should be free to decide whether to allow smoking based on free-market competition without intrusion from the government...

    "All we're saying is why have the state step in when people are very able to make decisions for themselves," (MLBA spokesman Andy) Deloney says. "We're talking about privately owned establishments. They don't take very kindly to someone saying, 'You know what? I don't like the way you're running your business.'"

    No word on who's taking up the companion legislation banning bars and restaurants from serving alcohol, a substance that directly contributes to traffic fatalities every day across the United States.

    < Brian Dickerson and feminism | New report says 49 other states grew last year while Michigan went backwards >


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    Display: Sort:
    the problems that you'll run into (1.00 / 1) (#1)
    by snoopygirlmi on Tue Jun 12, 2007 at 11:47:45 AM EST
    w/reforming Medicaid is that the state gives the money to the counties to manage.  Some of the mental health authorities are single county, but others include multiple counties.

    You can't bar people from getting treatment from a specialist who can provide a service that their regular doctor believes that they need for their recovery/treatment.  It's really a catch-22.

    After a certain point, they'll say you can't have this or that treatment; however, you can't provide services in public hospitals for some, but not others.

    If you can pay more to get the private room or the more risky -optional/experimental surgery, then they'll let you; however, you have to provide a certain level of service for everyone, regardless of whether they are on Medicaid or not.  

    Ultimately, it will be expensive to provide care for people on Medicaid because a lot of times they have chronic illnesses that prevent them from working.  Medication and hospitalization is expensive over time.

    So how do we manage the costs of a program where you can't place a quota on how many people receive the benefit (and thanks to this horrible economy more people are applying and receiving Medicaid for themselves and their kids), but...

    you can't control the costs of treatment because everyone is on Medicaid for different reasons and has different needs and...

    limited doctors take it and...

    still assist with providing supports for vulnerable people to receive health care without putting them back in institutions like they would have been in the 1950's/1960's?

    I really don't have an answer for my question, but I do think it needs to be overhauled and can't continue in its current form.  The services provided really shouldn't be the issue here.

    The real issue is should we come up with a better way to provide health care for the most vulnerable in our society.  

    If we say yes-this is a priority, then our politicans need the political will to follow through and not just push the problem off another year.  

    If the answer is No, then we need to consider the consequences of what to do with Medicaid.  Should we continue to take money from the Feds?  What would that do to these people?  How will we actually solve the problem of getting insurance and services for these people that are inexpensive, but are still quality services?

    After a certain point, you can't keep cutting off services to people with Medicaid.  It's supposed to be health insurance for the poor so they can get health care services.  If they have insurance, but can't use it (like some of the privates I know of), then why does this program exist?   What good is?  

    As I said, I don't know what the answer to this problem is; however, we can't keep piecemealing a budget together every year and hope things get better because of it.

    Fact free? (1.00 / 1) (#2)
    by NoviDemocrat on Tue Jun 12, 2007 at 01:19:48 PM EST
    "Elimination of MESSA's monopoly on teacher healthcare benefits...the GOP has tried to resolve the issue and consistently been blocked by legislative Democrats and Governor Granholm".

    Really? You mean when the Republicans controlled the House and Senate, when they had the votes to push through legislation, it was the Democrats who blocked that? How did that happen? Where are the bills that the Republicans pushed through to make that happen? Or maybe it didn't happen?

    "Is this the time to give government employees a $110 million raise?"

    Then why did Republicans agree to them in the first place? Why is it that Republicans argue for the sanctity of contracts except when they are expected to honor them? Bargaining and agreeing to something you have no intention of honoring is a pretty scummy tactic. I'm sure the employees would have bargained for something else if they knew that Republicans wanted to deny them a pay raise.

    "One of the favorite tricks of the lefties and the taxocrats is to look at a $42 billion budget and to insist that there's nothing we can do about $33 some odd billion of it."

    Wrong. All we've said is that cutting those dollars doesn't free up dollars in the General Fund. It's Republicans like Saul who attempt to mislead people into thinking that the State can shuffle around the entire $42 billion wherever you want when you all know that's not true.

    As for the reforms:

    "The state should also adopt legislation -- common in most other states -- that requires the elderly to pay for their nursing care if they have the means and prevents them from signing over assets to their heirs to qualify for Medicaid benefits."

    I agree with this. Too bad that Republicans have blocked efforts to make this law. I believe that the Republican special interest groups have opposed this.

    Republican opposition (1.00 / 1) (#3)
    by NoviDemocrat on Tue Jun 12, 2007 at 01:27:43 PM EST
    to eliminating the Personal Property Tax makes absolutely no sense. That's why business interests have lined up behind the Democrats plan. When surveyed, many businesses identified the PPT as being as much a problem as the SBT and for some, even worse than the SBT. Eliminating doesn't just benefit manufacturers. It's also benefits companies doing R&D and high-tech services that have a lot of expensive equipment that gets dinged by the PPT. Those are the companies that we want to see grow and those are the companies that the Republicans want to keep sticking with the PPT.

    As for the argument that small companies would pay more to pay for the PPT reduction? Go back and look at who paid the lion's share of the SBT. It wasn't small businesses. Many of them were exempt. So the new legislation spreads the tax burden across a larger number of companies. That's a good thing. Time for some companies to step up and pay their share versus forcing the Big Three and others to shoulder a disproportionate share of the tax burden.

    so let me get this straight... (5.00 / 1) (#4)
    by Nick on Tue Jun 12, 2007 at 01:31:18 PM EST
    you don't like Republicans.  Is that accurate?

    I couldn't give a flying flip what Republican special interest groups blocked what in the past.  It's time to make these changes NOW.

    As far as your questions... the House and Senate didn't move a MESSA kill in the past because Granholm promised a veto.  Why get the MEA any more riled up than you have to if you know it'll only face a veto?  That wouldn't be very wise.

    And what's that about NOT saying there's nothing we can do with $33 billion of the budget and then saying in the same graph that there's no way to move that money around?  Maybe the quickest contradiction in the history for your contradiction filled time on RM.

    • Nice try by NoviDemocrat, 06/12/2007 01:53:38 PM EST (1.00 / 1)
    not every dollar spent on medicaid (5.00 / 1) (#6)
    by Nick on Tue Jun 12, 2007 at 02:02:25 PM EST
    is a federal dollar.  Don't buy the Dem machine lie, Novi.

    no, didn't omit anything (5.00 / 1) (#8)
    by Nick on Tue Jun 12, 2007 at 02:19:11 PM EST
    But if you're not buying it then let your fingers do the walking and source it, friend.  

    I can (5.00 / 1) (#10)
    by Nick on Tue Jun 12, 2007 at 06:53:50 PM EST
    but you're the one calling me a liar.  Impetus is on you, friend.

    I'm not going to play your silly games all day every day and don't blog to answer your every silly, snarky,  misguided question.  If you've got something better than questionable wit you can bring to the conversation then by all means...

    NoviDumocrat (none / 0) (#12)
    by sandmman on Wed Jun 13, 2007 at 08:12:37 AM EST
    Why is it that you and Commie Guru think you can give the DumocRat Party talking points without any numbers or references - but come down on Nick when he won't supply those for you?

    And why (none / 0) (#14)
    by sandmman on Thu Jun 14, 2007 at 09:53:39 AM EST
    don't YOU ever back up ANYTHING you say, NoviDumocrat?

    Have you EVER backed up ANYTHING on this site? I don't recall seeing anything except your hack Dumocrat talking points.

    correction (none / 0) (#15)
    by blf80 on Thu Jun 14, 2007 at 02:53:45 PM EST
    Just to clarify - Andy works for the MI Restaurant Assoc, not the MLBA.

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