BUSINESS LEADERS PREPARED TO TACKLE BUDGET HEAD ON
Gongwer
2/19/2009
Spurred on by urgency from business owners that say they are being
choked out by Michigan’s worsening economy and upside down spending
priorities, business groups said on Wednesday that they intend to be
“very aggressive” in the appropriations process from now on.
While chambers of commerce and other business development groups have
traditionally had a sparse presence in appropriations meetings tied to
specific issues, it became clear after the 2007 budget debacle and the
coinciding business tax surcharge that simply offering a defense for
business leaders wouldn’t suffice anymore, said Sarah Hubbard, vice
president of government relations for the Detroit Regional Chamber of
Commerce.
The new strategy is one of offense, with several business groups
issuing proposals to trim billions from state spending, mostly in the
area of corrections and Medicaid and with suggestions to invest in
infrastructure and training that they say could help those businesses
that are “are hanging by a thread.”
Business groups said lawmakers must now take all of the ideas on the
table and have a real discussion about the state’s goals, placing a
higher price tag on the services it values most.
For instance, while the key to attracting businesses is offering a
great place to live with solid infrastructure and an educated workforce,
Michigan’s budget reflects a state that prioritizes corrections over
higher education, said Philip Power, president of The Center for
Michigan.
Rich Studley, president of the Michigan Chamber of Commerce, said:
“there’s a tremendous disconnect between (families) at the dinner table
and the attitude in Lansing that we’re going to turn the corner next
year and push tough decisions to the future.”
One recent example that lawmakers may be out of step with the problems
many Michigan residents face is HB 4313, which would allow school
districts to raise property taxes to support sinking funds.
“This is the same House where Democrats have said they are concerned
about home foreclosures and Republicans have asked for tax relief for
homeowners,” said Mr. Studley. He said he plans to testify against the
bill at the House Education meeting scheduled for Thursday.
His message this week and from now on: “no new taxes without reforms.”
While business groups said they feel a lot of pressure from their
members to tackle policies that are making it increasingly difficult to
operate in Michigan, they also stressed that their feelings about
current initiatives aren’t all negative.
Governor Jennifer Granholm is moving in the right direction with her
cuts and with talks of reform, they said, adding, however, that despite
assurances otherwise, the budget has not been cut to its bare bones.
As for waiting it out with the help of federal stimulus money, Ms.
Hubbard said that would be the worst decision lawmakers could make.
“The stimulus package may plug holes in the budget and allow the
Legislature to delay inevitable cuts, but that will make it harder to
cut next year.”
The bottom line, business groups said: now is the time, while Michigan
is two years away from another election, to really attack structural
reform and take advantage of a crisis and sense of urgency.
If leaders wait another year, they said, “anger and frustration will
boil over.”