Wednesday, May 04, 2011

Michigan House OKs $6.9B general-fund budget to close prisons, limit welfare to 48 months


BY CHRIS CHRISTOFF


LANSING – With only Republican support, the House today approved a $6.9 billion general fund budget for next year that spends $1.4 billion less than this year, and $165 million less than what Gov. Rick Snyder proposed.
That’s only half the battle done. 
On Thursday, the House is expected to vote on an even more controversial spending plan for public schools and colleges. That proposal would slash spending to K-12 schools by 3.5%, which means cuts ranging from $256 per pupil to $297 per pupil compared to this year’s spending plan.
It also for shifts about $900 million from the School Aid Fund to community colleges and universities – funding that has always come out of the general fund. 
Wednesday, only one of 63 Republicans voted against the 700-page budget plan for state government, which rolled 13 separate budgets into a single bill. 
All 47 Democrats voted against the budget, which totals $33 billion, much of it direct federal aid for roads, Medicaid and welfare programs. The $6.9 billion general fund includes only money collected by state taxes and fees.
Today's vote ignited an impassioned debate over the proper role of government, taxes and spending. 
Democrats called the budget plan immoral, unfair and even lethal because it reduces spending on social programs, such as domestic violence prevention. It strictly limits welfare benefits to 48 months – a limit that would drop about 12,000 from welfare rolls.
“You may have won an election, but you don’t have the right to hurt people,” Rep. Fred Durhal, D-Detroit, scolded Republicans. He said some people will die because they will be cut off from state-paid health care. 
Rep. Steven Lindberg, D-Marquette, warned that the Republican plan to privatize food services in state prisons could create safety threats. He said it would place inexperienced food workers among potentially dangerous criminals. He said inmates might rebel if cost-cutting affects the quality of their food. 
Rep. Chuck Moss, R-Birmingham, chairman of the House Appropriations Committee, replied that the budget the state has too long spent beyond what it can afford. 
“That’s how we did things in the old day, but those days have to end,” Moss said. 
The House approval represents one more step toward Snyder’s goal of a completed 2011-12 budget by May 31. The Senate has already approved its budget version, although it has yet to vote on a sweeping tax reform plan that would slash business taxes by $1.7 billion, tax pensions and eliminate a tax credit for low-income workers. 
The House has already passed a tax plan, which includes a modified pension tax that exempts pensioners ages 67 and over. 
The administration, House and Senate now must reconcile differences among budget plans, although all three generally follow Snyder’s blueprint to erase a $1 4 billion deficit and to give businesses a large tax cut. 
For example, the House budget would close down the Mound Correctional Facility in Detroit, something the administration opposes. 
As Snyder proposed, the House budget plan also reduces revenue sharing to cities, townships and villages.

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