Before House Speaker Nancy Pelosi and Senator Harry Reid give a single dime to state governments, they should demand governors who accept federal relief provide a detailed "debt reduction" plan including a timeline.  

Forty-three states are facing shortfalls.  None of the states, including Michigan, should receive federal taxpayer dollars unless they adjust the spending practices and structural problems that drove them to require federal assistance in the first place.  Governors must better manage the institution of government, or we are doomed to a fate of repeated federal relief packages for years to come.  

If Congress spends taxpayer money without requiring some spending reforms, it will be a blatant breach of members' fiduciary duty.  Congress has a great opportunity to offer assistance to states in need while at the same time calling on states to implement much-needed structural and spending reforms.

Our federal government should not support the states' continued addiction to runaway spending.  If the American taxpayers' money is used to provide financial relief to states, Congress should also require real reforms through efficient management practices by the state governors.  Much good could come of a financial stimulus by way of infrastructure upgrades and other building projects that could provide many jobs to an ailing state economy.  We should not squander this stimulus money on a patch to an overgrown government.

Here in Michigan, we know what it means to face a financial crisis after several years of rising unemployment and having to address a significant budget shortfall in 2007 and again in 2008.  Early forecasts show our state budget for the current year will be nearly $400 million in the red before book closing.  But putting a federal Band-Aid on our budget won't patch Michigan's structural budget deficit or overspending problem. And a federal economic stimulus certainly won't cover Michigan's gap for FY 2010 budget, which is anticipated to escalate to over $1 billion.

This looming budget crisis will be difficult to resolve, but it must be a top priority.  We have real deficits before us today that require long-term solutions.  We are calling on the governor to show some leadership in this regard, and provide a list of specific areas to make reductions and streamline government.  To assume that Michigan's economic woes will be resolved by the federal government is negligent.  It is incumbent upon the leadership of this state to resolve Michigan's budget deficit without relying upon a handout from Congress.  I look forward to the Governor announcing a comprehensive plan for savings and reform in her February state of the state address.  

Now is the wrong time for the governor or any elected official to introduce new programs that require more spending.  The time is right, however, for the governor to present a comprehensive list of budget reforms and for us to enact cuts now, instead of simply pushing the budget problem down the road for the next administration.