Michigan warned 20% cut might be next

Gov. Jennifer Granholm warned Tuesday of a possible 20 percent cut in state spending next year, a draconian step after billions in cuts since 2003 already have dented police and fire services, pushed schools toward insolvency and reduced oversight of prison inmates.

The request from Granholm is a further blow to health care providers, state police, universities and others dependent on public money in a state where revenue, adjusted for inflation, is at about the same level as in 1965.

Double-digit cuts likely mean double-digit university tuition increases, for example.

“I’m certainly having to take a job to find extra income to offset some of these (scholarship) cuts,” said Mitch Rivard, a 19-year-old Michigan State University junior from Bay City. “We’re going to see a very big gap in terms of who is be able to attend college if these cuts continue.”

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Posted in * Economics, Politics, Economy, Politics in General, State Government, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

6 comments on “Michigan warned 20% cut might be next

  1. Chris says:

    will the Gov. cut her salary by 20%? Not a chance…

  2. John Wilkins says:

    2) #1 is right. If she cut her salary, the entire budget would be balanced and everyone would be happy. The $30,000 saved would single handedly allow all the students at UM not to have a tuition increase. There would be more nurses and policemen. Excellent math.

    But let us not ask banks to loan to businessmen. Let us not ask businessmen to make sacrifices with their salaries to keep workers on board. That would be TOO MUCH and against capitalism.

  3. azusa says:

    “But let us not ask banks to loan to businessmen. Let us not ask businessmen to make sacrifices with their salaries to keep workers on board. That would be TOO MUCH and against capitalism.”

    John, what do you understand about economics? Private business creates wealth, government spends it. Sounds like you’re Back in the USSR.

  4. Chris says:

    of course that cutting her salary would solve everything is not what I implied, Gawain. But it would show leadership. And why do I have a sneaking suspicion that it only rankles you because the person we’re discussing is a Democrat? Would you care if Sarah Palin’s salary was cut when she was Governor? Somehow I think you’d deem that just…

  5. Paul PA says:

    John – I run a business – I have cut my salary to below minimum wage to keep people working and the business afloat. I could close & liquidate and put 40 -50 people out of work instead we are burning thru capital hoping that things turn around before that runs out. My wife is back to work full time rather than being home raising our children. I recognize many people do the same but it was not the choice we had hoped to make/had made. So what is the right choice – shut and lay people off and have my wife home with our kids or what we are doing. I have no idea what you do for a living/who pays your salary but I can assure you that there are few small businesses that are making easy decisions. I have no problem saying that government salaries/benefits should be cut across the board. My wife works for the government now – who else was hiring – so I can say from experience – the pay is significantly above the private sector.

  6. Kendall Harmon says:

    Paul in PA in #5 thanks for sharing, that is a good illustration of how tough it is out there right now.

    I do not know about the rest of you, but I just hate reading about Michigan. It just seems mired in so much loss and poor leadership.