Dems riled up by Dillon’s talk of cuts-only budget

House Democrats are expressing concern that Michigan Speaker of the House, Redford Township Democrat Andy Dillon, says he is working on developing a cuts only budget for the 2011-2012 fiscal year.

“Speaker Dillon’s comments are very disappointing,” said Detroit Democrat Shanelle Jackson. “I am disappointed to hear that that was the speaker’s perspective.”

Dillon’s comments were made to the Detroit News Tuesday, and published with little notice Wednesday.

Following the meeting, Dillon said he is working on a cuts-only budget and has identified $424 million in savings to school districts — an amount that would head off a school funding cut. He wouldn’t elaborate on where the cuts would come from.

Jackson was not alone in her criticism. State Rep. Joan Bauer (D-Lansing) said she too was disappointed.

“I feel that to deal with this budget deficit of $1.3 billion, that the only way is, in my opinion, to look at the whole end. We need to look comprehensively at this. We will have to do some cuts, I am sure,” said Bauer, who serves on the House Appropriations Committee. “I was not aware of that before it was in the Detroit News. Yes, it troubles me immensely. I do not know where we would find the cuts for a cuts-only budget this year.”

Granholm’s office made clear the all-cuts budget would not suffice.

“Funding education is critical to our economic transformation and future and [the governor] will not support a budget that cuts education,” said Granholm spokesperson Liz Boyd. Boyd noted that the governor’s office found out about the proposed cuts only budget the speaker is working on via the Detroit News.

The state has faced systemic deficits each of the last several years, deficits caused by flagging state revenue. Because the constitution requires a balanced budget each year regardless of revenue, more than $6 billion has already been cut from the budget. The 2010 plan included more than $1.2 billion in cuts, including deep reductions in funding for K-12 education and local revenue sharing, most of which goes to police and fire protection.

Bauer is backing a plan to lower the state sales tax to 5.5 percent and expand it to many services not currently covered. That plan, proposed by Gov. Jennifer Granholm, would bring in an estimated $550 million in additional tax revenues. The governor’s plan also includes cuts and reforms.

But Jackson says even the Granholm proposal is not enough. She noted that in 2007 Democratic leaders said there was nothing left to cut, because they were already cutting into “marrow.”

“Everything that is left is essential,” Jackson said. “It’s insane.”

She said as a result of decisions made by the state legislature, people have died. She specifically noted the death of two Michigan residents that have been attributed to dental health issues, and the fact the state eliminated non-Medicaid dental health programs in the last budget cuts.

This year’s budget also included steep cuts in Medicaid funding at a time when a record number of Michigan residents must rely on the program for their medical care due to the tough economy and resulting job losses. The state had to give up more than $500 million in federal Medicaid funds because the Senate rejected a bill passed by the House that would have raised revenue to pay for changes in the program.

Both legislators also differ on whether or not a budget can be completed by July, as many lawmakers are pushing.

“You can have all cuts by July, because you only have a few of us who will vote against a cuts only,” Jackson said.

“I certainly hope that, I actually am somewhat optimistic that we will be able to get this budget done in the summer,” said Bauer, noting that the Appropriations Committee had already moved its schedule up to push for an earlier resolution to the budget issue. “Part of that is because elections are looming, secondly we have heard from our school districts loudly and clearly that they need to know what is happening.”

One of the major problems with budgeting in this state is that local school districts are required by law to have their budgets for the school year that begins each fall set by July each year, but the state legislature does not finish its budget until the end of September. Schools are thus flying blind and relying on estimates of what state aid to schools will be and are forced to cut programs in the middle of the year if that aid is lower than expected, as it was this year.

Asked specifically if the TEA Party movement was impacting the dialog regarding the budget, both Reps. had differing views.

“It is a voice out there that obviously tends to be resonating with a number of legislators. It has an impact, absolutely,” said Bauer. “It’s always a challenge when you are in an elected position to really sort through the many voices and try then to say ‘what though do the majority of the people in my district want?’ It’s the old silent majority. The TEA Party– is that the silent majority feeling or is it not?”

Jackson, however, said that under every Democratic President in the past century a movement similar to the TEA Party has surfaced, but that their “true motives” surfaced quickly.

“What’s unfortunate is politicians nationally and statewide are playing to them,” Jackson said. “I would hope that people who are listening to those fringe groups have studied their history.”

Regardless of the reasons why Dillon continues to join with Republican Senate Majority Leader Mike Bishop in demanding a cuts only budget rather than a budget that combines cuts with revenue increases, it is becoming more and more clear that this year’s budget fight — which will take place during an election in which all the major players are seeking higher offices — could make last year’s boondoggle look like a walk in the park.