Thursday, January 31, 2008

Your hard working Full-time Legislature wraps up the month

As the month January ends, the House of Representatives has taken fewer than twenty record roll call votes on legislation. The good news is, we didn't do too much to damage the economy.

But one must wonder, would it be helpful if the legislature had only 90 to 120 days to finish its work? What if we were mandated to get to work on March 1st and finish by June 30th?

Next week should be more eventful. The Governor will officially unveil her budget priorities. We will find out where she believes the dollars should be spent, how much she wants to spend and how we will pay for it.


Your hard working Full-time Legislature wraps up the month

As the month January ends, the House of Representatives has taken fewer than twenty record roll call votes on legislation. The good news is, we didn't do too much to damage the economy.

But one must wonder, would it be helpful if the legislature had only 90 to 120 days to finish its work? What if we were mandated to get to work on March 1st and finish by June 30th?

Next week should be more eventful. The Governor will officially unveil her budget priorities. We will find out where she believes the dollars should be spent, how much she wants to spend and how we will pay for it.

Wednesday, January 30, 2008

From the Governor's State of the State

"...And, we will create new high school opportunities, particularly small high schools, to help the tens of thousands of students who now leave high school without a diploma stay on a path that leads to success in college and beyond." What was she talking about? Here is an excerpt from mlive:
Granholm pushes for tougher schools
Posted by Peter Luke Gazette News Service January 28, 2008 08:35AM
LANSING -- Gov. Jennifer Granholm will propose Tuesday a $300 million state fund to provide planning and startup cash for the creation of as many as 100 small high schools in Michigan.
The schools, designed to replace dysfunctional, industrial-model high schools plagued by high dropout rates and low academic achievement, would be:
• Proposed by local school districts and limited to 400 students or less on a general admission basis.
• Governed on site by a principal with increased autonomy to set budgets, establish curriculum, hire teaching staff and establish work rules.
• Possibly partnered with universities, businesses, foundations and nonprofit institutions to establish specialized fields of study.
• Based on an emerging national reform model that stresses rigorous course work, academic relevance to the real world, personal relationships between staff and students and individualized study plans.
----
While I certainly applaud the innovative idea of creating new schools to compete with existing schools that are failing, I must ask, why doesn't the Governor support Charter Schools? Four years ago, a retired businessman offered to build 15 new specialized high schools in Detroit, with his own money. But they could not be built unless the legislature, with the Governor's support, lifted the cap on charter schools in Detroit. There was no support or leadership from the Governor on getting this done.

I will have more to say on this in a future e-newsletter. If you would like to receive my free weekly newsletter via e-mail, just drop me a note at jackhoogendyk@gmail.com.


From the Governor's State of the State

"...And, we will create new high school opportunities, particularly small high schools, to help the tens of thousands of students who now leave high school without a diploma stay on a path that leads to success in college and beyond." What was she talking about? Here is an excerpt from mlive:
Granholm pushes for tougher schools
Posted by Peter Luke Gazette News Service January 28, 2008 08:35AM
LANSING -- Gov. Jennifer Granholm will propose Tuesday a $300 million state fund to provide planning and startup cash for the creation of as many as 100 small high schools in Michigan.
The schools, designed to replace dysfunctional, industrial-model high schools plagued by high dropout rates and low academic achievement, would be:
• Proposed by local school districts and limited to 400 students or less on a general admission basis.
• Governed on site by a principal with increased autonomy to set budgets, establish curriculum, hire teaching staff and establish work rules.
• Possibly partnered with universities, businesses, foundations and nonprofit institutions to establish specialized fields of study.
• Based on an emerging national reform model that stresses rigorous course work, academic relevance to the real world, personal relationships between staff and students and individualized study plans.
----
While I certainly applaud the innovative idea of creating new schools to compete with existing schools that are failing, I must ask, why doesn't the Governor support Charter Schools? Four years ago, a retired businessman offered to build 15 new specialized high schools in Detroit, with his own money. But they could not be built unless the legislature, with the Governor's support, lifted the cap on charter schools in Detroit. There was no support or leadership from the Governor on getting this done.

I will have more to say on this in a future e-newsletter. If you would like to receive my free weekly newsletter via e-mail, just drop me a note at jackhoogendyk@gmail.com.

Tuesday, January 29, 2008

"This is not a time for partisan nonsense"

"I am ready, and I believe in my heart you are ready too."


"This is not a time for partisan nonsense"

"I am ready, and I believe in my heart you are ready too."

Madame Governor is now starting to talk about new programs

expanding government...

Insurance regulations...

10,000 mentors...

projects...Cobo Hall, the Aviation Center in Houghton, the "Pie Factory in Saugatuck"?

Health care for everyone...


Madame Governor is now starting to talk about new programs

expanding government...

Insurance regulations...

10,000 mentors...

projects...Cobo Hall, the Aviation Center in Houghton, the "Pie Factory in Saugatuck"?

Health care for everyone...

Here is a great idea...

...allow children to go to school for five years and graduate with a diploma and an associates degree. Hmm...that sounds familiar...http://www.michiganvotes.org/2007-HB-4855

Oh yeah, that was RE-introduced by someone in the House in May of 2007 after it was introduced in March of 2006. http://www.michiganvotes.org/2006-HB-5903


Here is a great idea...

...allow children to go to school for five years and graduate with a diploma and an associates degree. Hmm...that sounds familiar...http://www.michiganvotes.org/2007-HB-4855

Oh yeah, that was RE-introduced by someone in the House in May of 2007 after it was introduced in March of 2006. http://www.michiganvotes.org/2006-HB-5903

And on the education front...

...let's double the number of college graduates by:

  • Increasing our "investment" in public education by expanding early education
  • Asking all school districts to offer full-day kindergarten
  • Making attendance compulsory up to age 18
  • Give the State Superintendent the authority to close under performing schools
  • Creating the 21st Century schools fund to create new smaller high schools


And on the education front...

...let's double the number of college graduates by:
  • Increasing our "investment" in public education by expanding early education
  • Asking all school districts to offer full-day kindergarten
  • Making attendance compulsory up to age 18
  • Give the State Superintendent the authority to close under performing schools
  • Creating the 21st Century schools fund to create new smaller high schools

She is calling for elimination of the gas tax...

...on ethanol and bio-diesel.


She is calling for elimination of the gas tax...

...on ethanol and bio-diesel.

We are going to create 17,000 new jobs...

...Consumers Energy and DTE will invest $6 billion in wind turbines, wind farms, etc. But we have to pass some laws first.


We are going to create 17,000 new jobs...

...Consumers Energy and DTE will invest $6 billion in wind turbines, wind farms, etc. But we have to pass some laws first.

We need to be like Sweden!

OK, Mackinac Center, research that one.


We need to be like Sweden!

OK, Mackinac Center, research that one.

Alternative energy is our future!

Where are the new jobs for alternative energy going?

Why not Michigan! We have wind, water and woods. And a skilled workforce.


Alternative energy is our future!

Where are the new jobs for alternative energy going?

Why not Michigan! We have wind, water and woods. And a skilled workforce.

"Michigan economic stimulus package"

$1 billion in government spending?? to build new roads and bridges...

(apparently the public sector has to create the new jobs)


"Michigan economic stimulus package"

$1 billion in government spending?? to build new roads and bridges...

(apparently the public sector has to create the new jobs)

"State employees made $170 million in concessions"

I will defer to the Mackinac Center for Public Policy to figure out how that happened.


"State employees made $170 million in concessions"

I will defer to the Mackinac Center for Public Policy to figure out how that happened.

And regarding the budget...

"last year we made cuts" (but the budget grew by $1 billion)

this year another $300 million cuts, $100 million in the rainy day fund and...

(read my lips) "NO NEW TAXES" and no new fees.


And regarding the budget...

"last year we made cuts" (but the budget grew by $1 billion)

this year another $300 million cuts, $100 million in the rainy day fund and...

(read my lips) "NO NEW TAXES" and no new fees.

Top priority: jobs

I will go anywhere...do anything to bring home new jobs.

I brought home 7,000 new jobs from around the globe. (While the state lost a net 35,000 jobs?)

Business will be rewarded for hiring through tax incentives.

New initiative "Invest Michigan" $300 million, will put us in the top three in the nation for making investment capital available.


Top priority: jobs

I will go anywhere...do anything to bring home new jobs.

I brought home 7,000 new jobs from around the globe. (While the state lost a net 35,000 jobs?)

Business will be rewarded for hiring through tax incentives.

New initiative "Invest Michigan" $300 million, will put us in the top three in the nation for making investment capital available.

"we need to increase advetising of the state"

the largest investment increase in marketing of the state by the state...

Robust investment in the film industry...

Spur the cultural life of cities and downtown...

Laws to protect the "great blue jewels"...the great lakes


"we need to increase advetising of the state"

the largest investment increase in marketing of the state by the state...

Robust investment in the film industry...

Spur the cultural life of cities and downtown...

Laws to protect the "great blue jewels"...the great lakes

"we replaced the dreaded single business tax..."

..with the dreaded Michigan business tax.


"we replaced the dreaded single business tax..."

..with the dreaded Michigan business tax.

"we need swift action and relentless focus on four things"

1. a job for everyone
2. health care for all
3. safe place to live
4. quality education for our children


"we need swift action and relentless focus on four things"

1. a job for everyone
2. health care for all
3. safe place to live
4. quality education for our children

"Our fellow citizens are angry..."

...families are losing homes, insurance rates are up, gas prices are up.

She admits much of that anger is directed at us.


"Our fellow citizens are angry..."

...families are losing homes, insurance rates are up, gas prices are up.

She admits much of that anger is directed at us.

She looks great

She is looking stunning in her dark cranberry red suit.


She looks great

She is looking stunning in her dark cranberry red suit.

Mr. Speaker, the Governor of the great state of Michigan


Mr. Speaker, the Governor of the great state of Michigan

The speech starts at 7:00 p.m. promptly

The Senate, the state officers, the court of appeals, the Supremes, everyone is in the chamber...the governor is about to be escorted into the chamber.


The speech starts at 7:00 p.m. promptly

The Senate, the state officers, the court of appeals, the Supremes, everyone is in the chamber...the governor is about to be escorted into the chamber.

Pre-game show

Here are the predictions for tonight's speech:

Spend more money on advertising (michigan.org); give incentives for film production; spur economic growth in downtowns.

Tax credits, cuts, reforms, put money aside for a rainy day, no new taxes (read her lips), no new fees, less red tape in government, economic stimulus package, eliminate tax on ethanol and bio-diesel.

Wait...did the governor switch parties? Oh, maybe it's an election year.


Pre-game show

Here are the predictions for tonight's speech:

Spend more money on advertising (michigan.org); give incentives for film production; spur economic growth in downtowns.

Tax credits, cuts, reforms, put money aside for a rainy day, no new taxes (read her lips), no new fees, less red tape in government, economic stimulus package, eliminate tax on ethanol and bio-diesel.

Wait...did the governor switch parties? Oh, maybe it's an election year.

Time for State of the State

What a festive night! We are all wearing our best "bib and tuckers" as we await the big speech. Lots of dignitaries and special guests. I am pleased to have Fred Taylor, Kalamazoo County Chair as my special guest on the house floor. State party chair Saul Anuzis just walked by and said hello. Gerry Hildenbrand, 6th district chair is also on board for the event.

Get ready for a "spin-free" analysis of the Governor's speech, right here, live and in person.


Time for State of the State

What a festive night! We are all wearing our best "bib and tuckers" as we await the big speech. Lots of dignitaries and special guests. I am pleased to have Fred Taylor, Kalamazoo County Chair as my special guest on the house floor. State party chair Saul Anuzis just walked by and said hello. Gerry Hildenbrand, 6th district chair is also on board for the event.

Get ready for a "spin-free" analysis of the Governor's speech, right here, live and in person.

Compulsory Education to age 18 in committee Tuesday

Education ALERT 

House Education Committee moving legislation today. The House Education Committee is scheduled to move HB4042, to make attendance compulsory up to age 18. Below is a message from Dennis Smith, Information Network of Christian Homes (INCH).
 
The MI House Education Committee has scheduled a hearing on HB4042, the bill to increase the compulsory attendance age to 18, during their committee meeting at 10:30a.m., January, 29, in 519 House Office Building, Lansing, MI.

You may recall that Governor Granholm also strongly supported this effort in her State of the State address last year. As a review of why we are opposed to raising the compulsory attendance age, go here (http://inch.org/issues/dropout_response.php) to view my response to this question from Pastor Don Jabaay in the Political Issues section
of www.inch.org.

We managed to avert this issue when the bill was introduced nearly a year ago by mounting a huge email and call-in campaign to House and Senate co-sponsors of the bill and follow-up contacts to everyone's own individual Representative and Senator. It is now the strong recommendation of the Home School Legislative Action Committee, an alliance of HSLDA, INCH, CTV, Support Group Leaders and friends in the Legislature, that we initiate a massive phone and email blitz to all members of the House Education Committee so they know there is a huge groundswell of opposition to this bill.
 
Our Plan of Attack

1. After you've read it, forward this email or the one you may receive from HSLDA, to as many of your Michigan home school contacts as you can. Do not forward this email directly to any legislator. It's not a problem if we all happen to get several copies of it. That just means we're well connected.

2. Send an email to all the House Education Committee members  expressing the reasons why you oppose this bill. I have included bullet points below to help you frame your opposition, but your words should be your own.
 
3. January 29 we need to flood the offices of all the committee members with phone calls. Respectfully voice your concerns with changing the compulsory attendance ages based on the talking points provided below. Ask them to oppose this bill in committee and to remove it from further consideration. They may quickly set their phones to go directly to voice mail. That's OK. Leave your message anyway. If you do get to speak to someone in their office, they may tell you to call your own Rep.'s office. Tell them you are calling this Rep. because he or she is a member of the Education Committee and that they should expect to receive calls from across the state on education issues that come before the committee. Since you may not be able to call every member of the committee, randomize who you call from the list below. That way all the committee members should receive lots of calls, not just the top ones on the list. Additionally, it would be a great idea for many, who can take the
time, to attend the hearing and voice your disapproval in person. In this situation it would again be important to not identify yourself as a concerned citizen or concerned tax-payer.
 
Why We Oppose Increasing Compulsory Attendance to Age 18

--It is no guarantee that kids will stay in school and graduate as Governor Granholm suggests. Increasing the compulsory attendance age will not reduce the dropout rate. In fact, the two states with the best high school completion rates, Maryland at 94.5% and North Dakota at 94.7%, compel attendance only to age 16. The state with the lowest completion rate (Oregon: 75.4%) compels attendance to age 18. (Figures are three-year averages, 1996 through 1998.)

--It does nothing to address the problem of kids between the ages of 12 and 16 who are already habitual truants. We already have laws on the books that aren't being enforced.
 
--There will be massive enforcement problems differentiating between kids who have a legitimate reason for not being in school and those who don't. Such reasons include in-service days varying from district to district, part time students, home school students; those expelled either temporarily or permanently, etc. It is a disservice to teachers and students who want to learn to force children who may be disruptive, delinquent or dangerous to keep in school if they don't want to be there.
 
--The cost to employee additional teachers and create additional "alternative" schools to keep delinquent kids separated from regular students will be massive. With a 3 billion dollar deficit looming over Michigan, we can ill afford to force kids who don't want to learn to remain in what will be viewed as a "kiddy prison".
 
Contact information for House Education Committee Members:
 
District - Name - Party - Location - Phone - E-mail
55 - Angerer, Kathy - D - S 989 HOB - 517-373-1792 - kathyangerer@house.mi.gov
84 - Brown, Terry - D - S 1188 HOB - 517-373-0476 - terrybrown@house.mi.gov
67 - Byrum, Barb - D - S 1086 HOB - 517-373-0587 - barbbyrum@house.mi.gov
34 - Clack, Brenda - D - N 798 HOB - 517-373-8808 - brendaclack@house.mi.gov
20 - Corriveau, Marc - D - N 699 HOB - 517-373-3816 - marccorriveau@house.mi.gov
75 - Dean, Robert - D - N 1094 HOB - 517-373-2668 - robertdean@house.mi.gov
22 - Hopgood, Hoon-Yung - D - S 786 HOB - 517-373-0852 -hoonyunghopgood@house.mi.gov
109 - Lindberg, Steven - D - S 1488 HOB - 517-373-0498 - stevenlindberg@house.mi.gov
27 - Meisner, Andy - D - N 791 HOB - 517-373-0478 - andymeisner@house.mi.gov
29 - Melton, Tim - D - N 793 HOB - 517-373-0475 - timmelton@house.mi.gov
31 - Miller, Fred - D - N 795 HOB - 517-373-0159 - fredmiller@house.mi.gov
15 - Polidori, Gino - D - N 694 HOB - 517-373-0847 - ginopolidori@house.mi.gov
3 - Scott, Bettie Cook - D - S 587 HOB - 517-373-1776 - bettiecookscott@house.mi.gov
91 - Valentine, Mary - D - N 1195 HOB - 517-373-3436 - maryvalentine@house.mi.gov
70 - Emmons, Judy - R - S 1089 HOB - 517-373-0834 - judyemmons@house.mi.gov
86 - Hildenbrand, Dave - R - N 1190 HOB - 517-373-0846 - rephildenbrand@house.mi.gov
61 - Hoogendyk, Jacob - R - N 995 HOB - 517-373-1774 - jackhoogendyk@house.mi.gov
41 - Knollenberg, Marty - R - N 890 HOB - 517-373-1783 - martyknollenberg@house.mi.gov
98 - Moolenaar, John - R - S 1287 HOB - 517-373-1791 - johnmoolenaar@house.mi.gov
93 - Opsommer, Paul - R - N 1197 HOB - 517-373-1778 - paulopsommer@house.mi.gov
73 - Pearce, Tom - R - N 1092 HOB - 517-373-0218 - tompearce@house.mi.gov
80 - Schuitmaker, Tonya - R - N 1099 HOB - 517-373-0839 - tonyaschuitmaker@house.mi.gov
72 - Steil Jr., Glenn - R - N 1091 HOB - 517-373-0840 - glennsteil@house.mi.gov
2 - Lemmons Jr., Lamar - D - S 0586 HOB - 517-373-0106 - lamarlemmonsjr@house.mi.gov
 
Sincerely, Dennis Smith, INCH
--------

Regards, Jack Hoogendyk
jackhoogendyk@gmail.com

P.S. I will be blogging from the House floor Tuesday night during the State of the State speech. Get online at www.jackformichigan.org/core and get minute-by-minute analysis and commentary.


Friday, January 25, 2008

Tax and spend outlook for 2008

"The Government's view of the economy could be summed up in a few short phrases: If it moves, tax it.  If it keeps moving, regulate it.  If it stops moving, subsidize it." --Ronald Reagan
 
"I will never raise taxes again." --Jennifer Granholm
 
As we move into another round of budget negotiations, starting with the Governor's State of the State Address next Tuesday, the two quotes above will likely come into play. What does the future hold for the taxpayers, businesses and families of Michigan?

Are the Democrats Finished Asking for More of Your Money?

Last year the legislature successfully raised your taxes by about $1.5 billion. Even as jobs continued to leave the state and the private sector contracted, the government grew. Government only grows when it takes more money out of the private economy; that is exactly what happened in 2007.
 
An optimist might say, well, at least the government will stop growing for the next three years because the Governor did promise not to raise taxes again, right? I am an optimist, but I am not saying that.  The question you must ask is, "What is the definition of 'tax increase?'"
 
Last year, when the Democrats pushed to increase the income tax from 3.9% to 4.35%, they did not call it an 'increase', they called it a 'restoration' of the income tax back towards its 'original' level. If that is the case then they could still call for a 'restoration' all the way back up to 4.6%.
 
And then there is the question of fees. Are fees just another form of taxation? Will the Governor call for new fees this year? 2007 gave us many examples of the creativity of Democrats when it comes to assessing fees. You have to give them credit for finding so many new ways to separate you from your hard-earned dollars.  Here are just some examples of the bills introduced last year, many of which have already been signed into law (red = already passed the House or signed by the Governor):

  • 4146 - Licensing fee for tanning facilities

  • 4216 - Licensing fee for boiler operators

  • 4221 - Disposal fees for solid waste

  • 4261 - Assessment for tourism promotion

  • 4501 - Increase in court fees

  • 4573 - Licensing fee for late bar hours

  • 4577 - Increase in vehicle registration fees

  • 4582 - Increase in the register of deeds copying fee

  • 4591 - Certification fee for teachers

  • 4624 - Increase in hunting and fishing license fees

  • 4668 - Fingerprinting fees

  • 4669 - Increase vote recount deposit fee

  • 4840 - Licensing fee for homes for the aged

  • 4843 - Licensing fees for plumbers

  • 4844 - Licensing fees for electricians

  • 4846 - Licensing fees for mechanical contractors

  • 4848 - Licensing fees for construction

  • 4849 - Licensing fees for pesticide applicators

  • 4860 - Licensing fees for pet shop owners

  • 4861 - Fees for appellate courts

  • 4862 - Fees for nursery stock

  • 4863 - Licensing fees for riding stables

  • 4864 - Licensing fees for livestock operations

  • 4865 - Licensing fees for security traders

  • 4866 - Licensing fees for corporations

  • 4946 - Licensing fees for professional geologists

  • 4971 - Permit fees for smoking restaurants

  • 5025 - Inspection fees for landscapers

  • 5036 - Fees for fire inspections  

  • 5154 - Licensing fees for hemodialysis technicians

  • 5242 - Environmental fees

  • 5257 - Filing fees for non-profit corporations

  • 5258 - Filing fees for LLCs

These are just some of the fee bills introduced in 2007. Now that the Governor has uttered her "read my lips" pledge, you can only expect to see more such legislation introduced in 2008. It looks as if the Democrats in Lansing have moved out of phase one, (if it moves, tax it) into phase two, (if it slows down, regulate it). With any luck, by 2009, the Governor can move into phase three.  Then, by the end of 2010, we can say we have been "blown away!"


Thursday, January 24, 2008

Transparency: what a great concept!

Today the Michigan Health and Hospital Association unveiled their new website www.MIHospitalInform.org. This web site was developed voluntarily by the MHA to provide price and quality transparency in health care. Consumers will find average charges, average payments, average length of stays and the total number of patients who were treated for any of 50 most frequent inpatient or outpatient procedures.

This is great news for consumers who are spending on their own health care. Wouldn't it be great if we had transparency in government spending? Actually, we already do at the federal level. All $3 TRILLION of the federal budget is available for easy review on line. To date, no less than 19 states have enacted transparency in government or are working bills through their respective legislatures.

The Michigan bill for transparency was introduced early last year. The Democrats in charge in the House have refused to even give it a hearing. Actually, Governor Granholm could enact such a measure virtually overnight by a simple executive order. No legislation is needed.

Is there wasteful spending out there the executive does not want anyone to know about?


Transparency: what a great concept!

Today the Michigan Health and Hospital Association unveiled their new website www.MIHospitalInform.org. This web site was developed voluntarily by the MHA to provide price and quality transparency in health care. Consumers will find average charges, average payments, average length of stays and the total number of patients who were treated for any of 50 most frequent inpatient or outpatient procedures.

This is great news for consumers who are spending on their own health care. Wouldn't it be great if we had transparency in government spending? Actually, we already do at the federal level. All $3 TRILLION of the federal budget is available for easy review on line. To date, no less than 19 states have enacted transparency in government or are working bills through their respective legislatures.

The Michigan bill for transparency was introduced early last year. The Democrats in charge in the House have refused to even give it a hearing. Actually, Governor Granholm could enact such a measure virtually overnight by a simple executive order. No legislation is needed.

Is there wasteful spending out there the executive does not want anyone to know about?

Tuesday, January 22, 2008

Why did we raise taxes?

There is an old adage when it comes to government budgeting, "Use it or lose it." If your department is budgeted a certain amount of money, you don't want to have any left at the end of the year, because if you do, you are likely to have your budget cut in the next year.

I have seen cases where as the end of the year approaches, department heads are scrambling to spend on whatever they can; computers, office supplies, etc.

So, when every single department of state government finishes the year with a surplus, it makes you wonder. That is exactly what happened at the end of the '06-'07 budget year last September 30. Now that the books have been closed, we know that there was a $136 million surplus in the budget.

Now, maybe I'm too cynical. Maybe I should just assume that every department learned how to become more efficient. Well, maybe. But either way, I can't help but ask, why did we raise taxes and spending when every department had money left over from the previous year?


Why did we raise taxes?

There is an old adage when it comes to government budgeting, "Use it or lose it." If your department is budgeted a certain amount of money, you don't want to have any left at the end of the year, because if you do, you are likely to have your budget cut in the next year.

I have seen cases where as the end of the year approaches, department heads are scrambling to spend on whatever they can; computers, office supplies, etc.

So, when every single department of state government finishes the year with a surplus, it makes you wonder. That is exactly what happened at the end of the '06-'07 budget year last September 30. Now that the books have been closed, we know that there was a $136 million surplus in the budget.

Now, maybe I'm too cynical. Maybe I should just assume that every department learned how to become more efficient. Well, maybe. But either way, I can't help but ask, why did we raise taxes and spending when every department had money left over from the previous year?

Wednesday, January 16, 2008

Back in the Saddle Again

Greetings and Happy New Year! After a nearly one-full-month "holiday" we are back at work. (Part-time Legislature, anyone?) Now that we are back at work, some of "us" are busy thinking of new ways to make government even larger. More for the judges to do, (custody of pets in a divorce); more for health care facilities to do, (mandatory hearing tests for newborns); and a little less freedom of choice at the local department or hardware store, (Mandate that US flags are made in the USA only).

Here is some of the important legislation just one lawmaker has already introduced this year:

  • HB5598, to authorize a court in a divorce case to order either the placement of any pets with one or the other party, or that the pet be surrendered to the humane society. A court could not order “shared custody”; however the parties could agree to this if they choose. Any agreement about pets between the parties would be made enforceable under the bill.
  • HB5596, to require health care facilities, or health care professionals in attendance at a birth, to test newborns for hearing impairment, or see to it that they are tested within 30 days. Also, to require the Department of Community Health to establish a program for the early detection of, and follow-up health care for, infants at risk for hearing impairment.
  • HB5477, to prohibit the sale in Michigan of U.S. flags not made in America.

Oh boy, its great to be back in Lansing serving the people!


Back in the Saddle Again

Greetings and Happy New Year! After a nearly one-full-month "holiday" we are back at work. (Part-time Legislature, anyone?) Now that we are back at work, some of "us" are busy thinking of new ways to make government even larger. More for the judges to do, (custody of pets in a divorce); more for health care facilities to do, (mandatory hearing tests for newborns); and a little less freedom of choice at the local department or hardware store, (Mandate that US flags are made in the USA only).

Here is some of the important legislation just one lawmaker has already introduced this year:

  • HB5598, to authorize a court in a divorce case to order either the placement of any pets with one or the other party, or that the pet be surrendered to the humane society. A court could not order “shared custody”; however the parties could agree to this if they choose. Any agreement about pets between the parties would be made enforceable under the bill.
  • HB5596, to require health care facilities, or health care professionals in attendance at a birth, to test newborns for hearing impairment, or see to it that they are tested within 30 days. Also, to require the Department of Community Health to establish a program for the early detection of, and follow-up health care for, infants at risk for hearing impairment.
  • HB5477, to prohibit the sale in Michigan of U.S. flags not made in America.

Oh boy, its great to be back in Lansing serving the people!

Tuesday, January 15, 2008

A Letter From a Frustrated Taxpayer

[Editor's note: this newsletter contains both a reprint of an article from Classical Principles and a letter from a taxpayer]

In today's letter I am sending a reprint of an excellent article by Robert Genetski from Saugatuck, Michigan.  He clearly and concisely explains what a negative effect taxation can have on the economy of a state. I also include a recent letter from a constituent which, I believe is a perfect example of how tax increases hit home in the real life of an "everyday taxpayer."

Taxing Away Michigan's Future
Robert Genetski

Defenders of Michigan's recent tax increases argued that additional revenue is necessary to provide much-needed government services.  This was the same argument used when the State established the Single Business Tax in 1975.  It was also the same argument used eight years earlier when Michigan established its State's income tax.

Do new taxes aid the State's economy, as proponents suggest?  Looking at history, the answer is obvious.  From 1940 to the mid-1960s, Michigan's economy consistently produced between 4½% and 5% of the nation's income.

In 1967, Michigan adopted a State income tax.    Eight years later it adopted its Single Business Tax.  Since the adoption of these taxes, Michigan's economy has lost jobs and income relative to the rest of the nation.

Michigan is not alone.  A substantial body of economic research shows that states that raise the tax burden on their citizens tend to lose incomes and jobs to those states that reduce tax burdens.

Unfortunately, Michigan's politicians have failed to understand that raising taxes begins a vicious cycle.  As individuals and businesses leave the State, the economic climate deteriorates.  With the loss of business and jobs, tax receipts suffer and government services have to be curtailed.  Raising taxes to make up for this shortfall accelerates the loss in jobs and income.  This in turn accelerates both a loss in tax receipts and cuts in state services.

Since 1965, the only period of significant tax relief for Michigan citizens occurred from 1984 to 1994.  During these years the state income tax was cut from 6.35% to 4.4%.  As the chart shows, these are the only years since the mid-1960s that Michigan did not experience a major decline in income relative to the rest of the country.  This period is also the only time in the past 30 years that the state experienced a sustained growth in new jobs.

Michigan Income Chart

Today Michigan is in the midst of this vicious cycle.  Over the past year US personal income increased by 6.3%.  In some states, income grew faster.  In others, it grew slower.  Michigan has the dubious distinction of having the worst economic performance of all 50 states.  It has the slowest growth in income and the highest rate of unemployment.  And this is before the Governor insisted up a major new increase in taxes. 

While Michigan tax receipts should increase in response to the latest tax hikes, the increase will be temporary.  It takes time for businesses to relocate.  As they relocate, Michigan will lose jobs and incomes to other states.  Before long, Michigan's politicians will again be faced with a shortfall of revenue.  With less revenue they will once again be forced to cut government services and jobs.

To reverse this vicious cycle, Michigan must do what other states have done to attract jobs and businesses.  It must significantly reduce the tax burden on our citizens.  Doing so will help reverse the economic deterioration of the past forty years.

A Letter From a Frustrated Taxpayer

Dear Jack,
 
Thank you for your relentless diligence of trying to keep our tax burden in check. I just received my paycheck last week. I now bring home $10.29 less every two weeks. I know it does not seem like much to the BIG spenders in Lansing, but it has a tremendous impact on my family budget. Unlike the government, I will not rob my neighbors and fellow citizens to make up for my budget shortfall. I balance my budget every month, and I will make judicial cuts that will come back out of the money that I normally to Lansing every year.

I will not purchase a Michigan state parks permit next year, I will not use the Michigan state park system next year. I will not purchase a Michigan combo deer license this year. These are things I do and have done every year for the past several years. I normally like to support Michigan, but I cannot afford this tax increase and will do everything I can to make sure the Governor isn't going to win at my family's expense. Please feel free to use this letter to let the Democrats and any big spending Republicans know that they are not balancing the state budget by taking more of my money. In fact, they are losing more money from me.