For Immediate Release: January 12, 2010
Bouchard: $1.7 billion state budget shortfall
shows need for reforms, economic jump-start
Oakland County - Mike Bouchard, Republican candidate for governor, today called on the governor and lawmakers to act on his proposals to reform government and jump-start Michigan’s economy now that Michigan faces an estimated $1.7 billion budget shortfall for the 2011 budget year.
“State government can no longer afford business as usual,” Bouchard said. “We must make major changes now to promote job growth and make government live within its means. I encourage the Legislature to take up my plans to fix Lansing and get Michigan back to work.”
Bouchard has offered a number of proposals that would help the state address its chronic budget shortfalls.
To fix Lansing ’s budget process, Bouchard has proposed that lawmakers enact a balanced budget by May 15. Until that job is done, no nonessential legislation would be considered. The budget would be a two-year rolling budget with a three-year outlook that would be independently verified for accuracy. The governor and all legislators would be docked a day’s pay for each day after May 15 that a budget is not in place.
“A two-year budget with a three-year outlook forces state leaders to plan ahead so they can make budget adjustments continually to avoid a crisis down the road,” Bouchard said. “The state’s two near shutdowns in the past three years shows the present system is broken and needs to be reformed.
“Unlike the state, Oakland County uses a two-year budget plan and has succeeded in weathering the current economic downturn with a AAA bond rating. That’s a model for success that I will bring to Lansing as governor.”
Bouchard also would have school districts competitively bid secondary services, such as busing and janitorial work, at the intermediate school district level. The reform would conserve scarce education dollars so they could be spent where they belong — in the classroom educating children. Some districts already have experimented with competitively bidding some services, but more would be encouraged to do so.
To help jump-start the state economy, Bouchard has put forward his “Michigan Construction Jobs Now” plan, which would give homeowners and businesses a tax incentive to invest in Michigan and help create jobs. The plan helps put hard-working skilled-trades people such as carpenters and plumbers back to work by increasing the number of construction jobs.
Under the plan, people would have 12 months to complete home and business renovations, remodels and similar improvement projects. Those construction projects, which would normally increase the property’s taxable value, would not be counted for tax assessment purposes until the house or business is sold.
The plan also covers new home construction, meaning property with newly built homes completed during the 12-month period would be taxed at the value of the undeveloped land for up to a year after completion of the project or until the property is sold, whichever comes first. After that, the property reverts to its normal assessed value.
For more information about Bouchard’s plans to fix Lansing and get Michigan back to work, visit www.BouchardforGovernor.com.
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Paid for by Mike Bouchard for Governor
P.O. Box 1433
Royal Oak, MI 48068
