Reaction To Governor’s Budget Plan

SOUTHFIELD (WWJ) – Michigan Gov. Rick Snyder unveiled a $45 billion cost-cutting budget on Thursday.

As part of the budget, Snyder wants to cut funding for Michigan’s 15 public universities by more than 20 percent unless they agree to keep tuition increases around 7 percent.

In response, local college students tell WWJ’s City Beat Reporter Vickie Thomas that they’re worried about how the governor’s proposed budget will effect their plans to get a degree.

Steve Wiseman of Madison Heights is a junior at Oakland University, where he’s already seen his tuition rise at least twice. He says when that happens, it’s really a double-edged sword.

“If tuition keeps increasing, that’s less money I have to spend and it’s less money to help fuel the economy,” Wiseman said. “If my tuition is less, I’m more likely to go out and buy things or pay down credit, which is probably gonna be another problem sooner or later. I mean, we’re gonna have all these students coming out with massive amounts of debt.”

    Reaction from Detroit Mayor Dave Bing

Detroit Mayor Dave Bing says the Snyder budget threatens the concrete but fragile fiscal progress made by the city of Detroit over the last 20 months. He goes on to say the proposed slash in revenue sharing – he feels is directly at large municipalities like Detroit. 

The first-year Republican governor proposed spending cuts for schools, universities and local governments and ending many personal tax breaks. The budget also would eliminate before – and after – school programs, cut hundreds of state jobs and ask public employees for concessions.

Bing says the Brownfield and Historic preservation tax credits helped make major investments like the Book Cadillac, the Taubman Center and Fort Shelby a reality.  Eliminating the tax credits, Bing says, is bad business for Detroit.

The major says the city is committed to working with Gov. Snyder and state lawmakers to support a budget sensitive to Lansing’s fiscal challenges but  that does not pass them off onto cities like Detroit.

To read more on the budget plan, click on here.

The Associated Press contributed to this report.

  • Diane

    Channel 7 had a screen on last nite that said that under the new budget 95,000 businesses in Michigan will pay NO income tax. Did I read that correctly? And if so, how is that “SHARED sacrifice” and “fair”? If that’s an example of the “best practices” that Snyder keeps bantering about……………….wow.

    • Steve

      Because those 95,000 non- “C” corporation business’s are currently paying taxes twice. With non- “C” corporation entities all expenses and income flow through to the individual owner(s). The business pays tax first, then the individual pays tax again. If people would educate themselves about how things work we’d all be better off. School’s don’t teach logic and critical thinking anymore. I’m tired of paying more taxes every year so firefighters, police officers, teachers and other public employees can retire at 52 years of age. Check it out. Many do just that. The taxpayers pay for people to be retired for 30 years. It would be better for the entire state to go to the Fair Tax. Check it out at Read ll of it not just individual hot button items.

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    Nothing truly worthwhile is ever easy –
    The future of this great state and our children’s/grandchildren’s future here is indeed worthwhile. And although the new governor’s proposed budget is a tough thing for all of us to hear – it (or something pretty similar) is indeed what we Michiganders NEED to assure we can offer the necessities (not the nice to have’s) and honestly balance the books going forward.
    Let’s be the real leaders of this great nation and set an example for the other 49 states on responsibility, accountability and pride.

  • Inspire Michigan

    I have great respect for the Governor and my organization, not only endorsed him, but also honored him… I am in total disagreement with the so-called “job-creating” cuts in this budget. If Snyder were Governor of a new colony on the moon, this would be a great plan. Policy and fiscal strategy need to fit into the context of the infrastructure and assets that you have at your current disposal. He does not have a strong public school system, he has a fragile one. He does not have healthy pension environment, he has a beleaguered one. He does not have a robust real estate development community, he has a decimated one. He does not have diversified emerging economy, he has several immature silos and one unstable giant.

    We have major problems in public safety, labor relations, and racial distrust. But no one wants to have those conversations. Let’s just talk about the tax code? He should listen to his friend John Rakolta… New companies will not come here to create jobs because of our 6% tax rate. Small businesses rarely EVER relocate. Companies go where the incentives, labor climate, and quality of life ratings are the best. We are long way from cleaning up our unfair public image or our labor perceptions, but at least we had some aggressive incentive programs for development and new economy initiatives. Now, we are going out to the national business community and saying “Come to Michigan! We are one of two dozen states that has a low corporate tax rate… Yipee!” And it’s NOT EVEN CLOSE to being the best tax rate.

    It just won’t draw corporate investment, it won’t draw emerging industry, it won’t diversify our economy, and most importantly it will not stop the brain drain… Graduates and educated people will continue to leave because they are not living on the moon. They are living in a really difficult environment that just got significantly more difficult. I just hope the MBT elimination will balance some of the losses….

    Inspire Michigan

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  • Sandy

    Cut not spend. Across every state dept., every school and everywhere else-there is NO budget that can’t take a 10% hit. Someone is always going to squeal in this age of special interests. I say, let’s all be responsible for ourselves–and quit having to carry the dregs of society on our backs. People will find a way to get off their duff if they think they or their children are going to go hungry because someone else is going to quit providing for them. Enough. If you are disabled, elderly, or mentally incompetent, we’ll help-if not, get going.

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