State government, local officials wait for governor’s budget ax

LANSING — The state government is bracing for big budget cuts Gov. Jennifer Granholm is expected to announce Tuesday morning. The $300 million in cuts are to close a nearly $1.3 billion budget shortfall in the current fiscal year.

The budget gap is the result of record unemployment, a faltering economy and swelling Medicaid rolls. A record 1.7 million Michigan residents are currently covered by Medicaid, according to The Detroit News.

Charlie Cain of The News reported May 2:

Prison employees could also face job reductions, and health care officials are bracing for cuts in the Medicaid reimbursements they receive for treating the poor.

Much of the chatter in Lansing on Monday night focused on the potential for sizable cuts to the Michigan State Police, as well as what has been floated by some as a $40 million cut to local revenue sharing. Local revenue sharing helps local cities, counties and townships pay for vital services like police and fire protection.

The Michigan Muncipal League has even issued an action alert to its members urging them to opposed any local revenue cuts.

The state police faced a similar crisis two years ago when it faced the prospect of laying off 29 state troopers. Those jobs were saved at the last minute when the Michigan State Police Troopers Association stepped in and donated $400,000 to the state to save those jobs.

Now, according to The News, the state police could be facing a cut of 80 troopers. The group just graduated 83 new officers last year, and most of them would be most vulnerable to potential layoffs.

Arts groups and leaders are also keeping an eye on the Tuesday morning announcement, wary that the governor will slash Michigan Council for the Arts and Cultural Affairs grants, decimating summer and fall festival funding. In February, Granholm surprised arts leaders across that state when she proposed the elimination of MCACA grants.