Michigan is Not Alone

Almost every state in the country will face a budget deficit next year and more than half will face budget shortfalls in the double digits.  An article in the current issue of Time Magazine (Inside the Dire Financial State of States, June 28, 2010) discusses how states across the country are facing staggering budget deficits for the third straight year. The billions of dollars of federal stimulus money will end this year and, so far, Congress has been unwilling to support a $50 billion emergency aid bill.  Therefore, states across the country, including Michigan, will have no other choice but to address their budget deficits head on and address several difficult issues including education, Medicaid, public employee pay and benefits, and corrections funding.  Another major issue is the long-term pension fund obligations that are not fully funded.  The Pew Center on the States estimates that state pension plans as a whole are at least $1 Trillion short.

Michigan’s budget deficit will continue to grow if we don’t adopt a long-term, comprehensive budget solution that includes tax, budget, and fiscal reforms.  If Michigan wants to be a competitive place to do business and retain, grow and create jobs, we must tackle these difficult issues sooner rather than later.

Learn about our Michigan Turnaround Plan, a 5-step plan to turn Michigan around, at MichiganTurnaroundPlan.com.

David Brandon and Michigael Jandernoa Talk About Economic Revival

From Detroit News: Economic revival requires bold moves

Dave Brandon and Michael Jandernoa

As legislators work to pass a budget, they should look at a comprehensive, holistic plan for turning around Michigan's economy. The Michigan Turnaround Plan, created by Michigan chief executives and senior executives, lays out the case for change, sets achievable goals, identifies specific action steps and explains the impact of change.

The best case short-term scenario for a new budget is that it is balanced with no tax increases. There are plenty of specific ideas for accomplishing this. But Michigan must begin immediately thereafter to start pursuing reforms to position itself for long-term, sustained economic growth. CLICK to read the rest....