Michigan’s $350 Million Surplus A Bad Thing

Bah! Humbug! Paint me as a scrooge if you want to. I don’t really care. What’s troubling is that the media, which should be looking for the truth behind Michigan’s budget woes, are now casting the lawmakers as heroes because the year ended with a budget surplus of some $350 million dollars. So why isn’t that good?

Let’s backtrack for a moment. Michigan was in turmoil. The democrats and republicans couldn’t agree on how they were going to handle a projected budget deficit. It wasn’t until a couple of republicans jumped ship and joined the democrats that a deal was reached to raise taxes. We must remember that this tax increase of around $1.35 billion was for the 2007-2008 fiscal year.

The Michigan government was actually shut down for a time but in the end, large budget shortfalls where predicted and even after agreeing to raise taxes by $1.35 billion for next year, some lawmakers were still crying that Michigan was going to see as much as a $34 million or more shortfall.

Instead of having parades to honor the inept Michigan legislature, why aren’t the taxpayers seeking answers and truth? Is it so difficult to carry out a budget? Is it so hard to project revenue? Isn’t a budget complete with expenditures with each having a limit? What is the truth behind all this?

Maybe it’s just total ineptness or perhaps it’s blatant ignorance. Could be it is just slimy politics at its usual best at the expense of the taxpayer. But what if there was more to this than is being talked about? What if it involved intended deception in order to bolster the coffers for pet projects? Isn’t this done everyday in politics? Is that what’s happening here?

If you will recall back just before Christmas, a miracle at the Michigan Department of Natural Resources happened. What was expected to be a near $11 million shortfall, ended up being a $10 million surplus. The head of the MDNR, Rebecca Humphries, gave the following reasons for the windfall.

……an unexpected increase in license sales, operational savings and higher-than-expected returns on investments.

If you will also recall, the DNR was asking for exorbitant increases in hunting, fishing and trapping licenses in order to fill in the hole of a projected large deficit of $11 million dollars. The Michigan United Conservation Clubs went out on a limb they said to support the license fee increases because they didn’t want to see conservation programs cut.

The DNR asked for money from the general fund to pick up the slack. This was all happening at the same time the state was wrangling over the general budget.

Is there any truth to the excuses Humphries gave for the unexpected surplus. As I pointed out in a previous article the state had already reported that there were no extra hunting licenses sold for this year, so I guess we can toss that one out the window. We have no idea on how the department saved money through operational savings and returns on investments. Why should we believe any of the reasons if we know one reason given was a bunch of bull?

Getting back to the general state budget, where did this money come from?

Greg Bird, spokesperson, speaker of the house: “We had a feeling there might be a bit of a surplus, but I think the amount was quite a surprise, it’s good news.”

And there are several reasons for that surprising amount. State officials say the surplus is a result of higher tax revenues than originally projected and spending restraints on state departments and a lower than expected number of caseloads for the Department of Community Health and the Department of human Services.

I wonder if the “feeling” coming from the speaker of the house’s office was also a feeling that the head of the DNR had about their budget?

It is difficult sometimes to predict revenues from taxes because often times that revenue is greatly affected by the economy in general. A theory often used by republicans in seeking tax cuts is they feel a tax cut will put more spending money back into the economy which in turn will result in more taxes paid back the state. Is Michigan’s economy that robust? I thought the auto industry was on the verge of total collapse.

But someone please tell me what “restraints” on spending means?

Public opinion of the Michigan legislature scraped the bottom of the barrel only months ago and now our media wants to lift them up to be heroes. What is going on here?

So where does Michigan go from here? Isn’t it clear? The democrats got their money and now they a salivating over it making plans on how to spend it. When is the last time you saw “extra” tax money returned to the people who paid it? There’s absolutely no talk of doing anything with the surplus money other than spending it.

Michigan Radio News reports:

Budget officials and state legislative leaders will decide how the extra money will be used.

WLNS TV reports:

And with that leftover money, it’s up to lawmakers to determine how to spend it. It’s a decision yet to come. State lawmakers say they’ll have a better idea of how the surplus will be used after a special conference planned for next week.

WOOD TV also reports on how the state will spend the money.

Budget officials and state legislative leaders will decide how the extra money will be used. The Senate Fiscal Agency has predicted a deficit of $34 million for the state general fund next fiscal year, while others have warned of a larger shortfall, the Detroit Free Press reported Thursday.

We now have the legislators in Michigan looking at $350 million and how they are going to spend it. Was this the plan? The Grand Haven Tribune carried an article on Wednesday about the goals of House Speaker Andy Dillon having been put on hold during this budget crisis. Now with a surplus of money, that appears to have fallen out of the sky, will Dillon be clamoring for a share of that money to carry out his own goals?

In the meantime, the DNR has troubles of their own. We don’t know how much of the budget woes within the DNR are directly related to those of the general budget but we can only surmise. Is it as difficult for the MDNR to plan a budget as it is the Michigan legislature? Evidently it is or there’s wheelings and dealings behind closed doors. But there are angry sportsmen that are demanding answers and rightly they should be.

For years the budgets of the fish and game have been carried on the shoulders of the license-paying sportsmen. When budgets appear to be coming up short, it is always the sportsmen being asked to pick up the slack. Michigan hunters, fishermen and trappers were asked last year to at least double what they had to pay for a license. Some where adamant against such a move, while other said they would pay the price if it meant protecting the wild game and other wildlife and conservation programs run by the state.

This commitment by some sportsmen came from an understanding of honesty and openness between themselves and DNR. There was a certain amount of trust that the sportsmen had that DNR wouldn’t steer them wrong. As shaky as the relationships often are between sportsmen and fish and game departments, this came as a sucker punch hitting below the belt.

There are far too many questions that need to be answered. Sportsmen are feeling used and abused. It sounds like not only should Michigan be looking for new leadership within the DNR but also in the state legislature. Voters can make a change in November when they return to the polls.

In the meantime, there still needs to be some serious discussion. Rumors are flying about that both of these surpluses were known about before hand. The question becomes when was it known and by whom?

I have a feeling we haven’t heard the end of this saga. There are individuals and groups within the hunting and fishing ranks that are demanding answers. They need all of our support, for as license-paying sportsmen, we cannot sit idly by while government departments irresponsibly spend our money. This has gone on far too long.

Get involved. You’ll be glad you did.

Tom Remington