Tuesday, January 15, 2008

A Budget Surplus? Whaaaa?

How about a non-religious item?

We are in the middle of a primary election season in our country, and stuff is flying around like a wind storm. Some of those things relate to our state, Michigan. And some of that stuff is very smelly stuff indeed.

One such odorous claim is that Michigan is, according to one national GOP candidate, a "one-state recession." Mind you, we have our problems, what with unemployment being above 7 percent and prospects for new jobs being dismal [ask anyone who has been trying to find work here]. But there are also some very positive things going on here, too, such as state-level leadership in Lansing.

Lest the readers and hearers of these presidential candidates be fooled that Michigan is about to go under, let them read the recent article in the Michigan Daily, entitled "State has surprise $350 million surplus." I wonder how many other states can make this claim. And that comes on the heels of a dismal fiscal state of affairs here in Michigan where previous administrations [read "Engler" here] had incurred a $1.7 billion [That’s BILLIONS, friends] deficit.

Governor Grandholm has successfully grappled with the serious fiscal problems of this state in an exemplary manner, in my view. Yes, it has taken some courage and has required some very difficult decisions, but she has demonstrated the courage and fortitude to take on the special interests that had benefited from the profligate largess of the previous administration. The amazing thing is written in the article:

"The surplus is for the 2006-07 fiscal year, a period in which a deficit of more than $1 billion was filled by delaying payments to state universities and community colleges, dipping into funds set aside for job training and substance abuse treatment and selling off the state’s future tobacco settlement. Taxes were not raised to deal with the shortfall."

What? A Democrat, fixing the budget by fiscal prudence? Shades of Bill Clinton!

Indeed.

The article goes on:

"The surplus is not part of this year’s budget agreement, under which taxes were raised by $1.3 billion and spending was cut or restricted by more than $400 million to help wipe out a $1.75 billion state budget deficit and place the state on a sounder financial footing."

Indeed!

I admit that there are remaining serious economic issues in our state. But fiscal irresponsibility and profligate spending of the past administrations are not now among those problems. Yes, we need to begin the really hard work of developing jobs and restructuring the bases for the new Michigan economy, but we can be thankful that we have the sound fiscal policies of the Grandholm administration to lean upon to leverage our efforts to restore our state to its former economic condition and productivity.

What I fear most is that, God forbid, De Vos might become governor one day, and like his close friend George Bush, be inclined to wipe out any surplus by a gigantic giveaway to his corporate friends. The people of Michigan must resolve to prevent this almost certain eventuality if De Vos is ever elected as governor.

And, by the way, giving more money to Detroit auto makers is NOT the answer! What they need to do is to give us a quality car and we will buy them out of trouble. So far, it hasn’t happened.