Mike Bouchard For Governor

For Immediate Release: March 8, 2010

SAGINAW — Mike Bouchard, Republican candidate for governor, today announced a comprehensive plan that will give businesses a more predictable and stable tax environment.  His plan encourages long-term job growth by cutting business taxes and restricting government growth and spending so job creators can make decisions about their future investments knowing they’ll have an economic climate that fosters future success.

“If Michigan is going to attract more jobs and investment, we must assure job creators that they will have the tools necessary for success over the long-term,” Bouchard said.  “I call the plan my ‘Principles for Lasting Prosperity.’  It’s about rightsizing government, ensuring that taxes and regulation stay low, and fostering an economic climate that allows Michigan residents and businesses to thrive in a global economy.”

As governor, Bouchard would issue executive orders, push for legislation and champion constitutional amendments to make the reforms necessary to fix Lansing and put Michigan back to work.  His proposals focus on Michigan’s long-term success and ensuring that job providers can and will succeed.  The proposals include:

·         Eliminating the Michigan Business Tax and replacing the business tax system with one that is low, easy to comply with and makes Michigan globally competitive.

·         Moving all future public employees, including school district, local government, and public higher education employees, to a defined contribution plan from a defined benefit plan.

·        Creating a cafeteria-style health-care plan option for all three branches of government. Employees would have two or three choices and can pay for enhanced options or choose reduced coverage. Universities, school districts and local units of government could opt in to lower their insurance rates.

·         Requiring a two-thirds vote in the Legislature for tax increases and hikes in total state spending that outpace prior year private sector spending (Gross Domestic Product minus inflation.) This will protect taxpayers and businesses now and in the future. Bouchard proposed this twice while he was a leader in the Senate.

·         Increasing government transparency by requiring state agencies to post every check written online for taxpayers to review, and by posting state employee salary and benefit information, including unfunded liability information.

·         Systematically reviewing every state agency for efficiency and eliminating optional programs that duplicate federal ones.

·         Having the Legislature become part-time with lawmakers getting part-time pay, and requiring that lawmakers have a budget in place by May 15 or have their pay docked for each day it’s delayed.

·         Creating a two-year rolling budget process based on externally verified numbers that looks ahead three years so lawmakers and the governor can plan for the future and make budget adjustments as needed.

Bouchard made the announcement at the headquarters of Duperon Corp. in Saginaw.  The company designs and manufactures innovative water filtration equipment and sells its products throughout the country and abroad.

“Duperon’s success is what I want to see duplicated across Michigan,” Bouchard said.  “Ensuring that government at all levels lives within its means by keeping spending under control and by offering a reasonable tax and regulation environment lets entrepreneurs know that Michigan is open for business.”

For more information about Bouchard’s plan for creating a long-term prosperous future in Michigan, visit www.BouchardforGovernor.com.

Mike Bouchard’s Principles for Lasting Prosperity

Mike Bouchard is offering a comprehensive plan that will give businesses a more predictable and stable tax environment. His plan encourages long-term job growth by cutting business taxes and restricting government growth and spending so job creators know they’ll have an economic climate that fosters future success. People considering investing in Michigan want to know the state they’re investing in offers a stable, consistent approach to taxes and spending.

Make Michigan a Magnet for Entrepreneurs and Job Creators

As governor, Mike Bouchard will hang an “Open for Business” sign out across Michigan so that entrepreneurs know that state government is ready to assist them in succeeding and not stand in their way.

➢ Scrap the Michigan Business Tax and replace it with one that is low, easy to comply with and will make Michigan competitive. Would require law changes.

➢ Use university-based research and development to stimulate the economy. Bouchard understands the role that Michigan’s universities can play in moving advancements in technology, health care and emerging sectors into the marketplace. As governor, he will use available state resources to support R & D efforts at universities that later can be brought to market by Michigan-based businesses. For those products that have a commercial appeal and generate revenue, a small percentage of the revenue would be placed in a revolving fund that continues investing in our research universities, making the program self- sustaining. Would require executive action.

Keeping the Legislature out of Taxpayers’ Pockets

Raising taxes to solve problems should be the last resort. There needs to be a higher bar for tax increases to be approved. It takes a supermajority to give a law immediate effect so it should at least require the same level of support from the Legislature to take more money out of taxpayers’ pockets.

➢ Require a supermajority (66%) vote in both the House and Senate for tax hikes. Making it more difficult to increase taxes offers taxpayers and businesses protection today and into the future. Would require constitutional amendment.

➢ Require a supermajority (66%) vote of the House & Senate before total state spending — now at $47.9 billion — is permitted to increase faster than private sector spending (Gross Domestic Product minus inflation) has grown in the prior year. Would require constitutional amendment.

Controlling the size of government

Government must do what many private sector employers have already done: reduce spending to reflect the reality of Michigan’s current economic situation. Mike Bouchard will make sure the average pay, health insurance and retirement benefit levels of government employees are reflective of those who they serve and in line with the average benefit levels in the private sector.

➢ Make it a requirement that all public service employees, on average, have wages and benefits that are within 5 percent of those comparable skills in the private sector. Would require constitutional amendment.

➢ Eliminate optional state programs that duplicate federal programs. Halt the creation of all new state programs until existing programs are evaluated and those that no longer meet our needs or are redundant are eliminated. Would require executive action.

➢ Move all future public employees, including those in local government and at our schools, colleges and universities, from a defined benefit plan to a defined contribution plan. Would require constitutional amendment.

➢ Create a cafeteria-style health-care plan option for all three branches of government. Employees would have two or three choices and can pay for enhanced options or choose reduced coverage. Universities, school districts and local units of government could opt in to lower their insurance rates. Would require constitutional amendment.

➢ Systematic review of every state agency. Public spending cloaked in privacy invites waste and mismanagement of public funds. Under Bouchard’s leadership, every agency will be scrutinized with the purpose of eliminating wasteful spending with the ultimate goal of getting a larger percentage of funds to the critical impact point of the core mission, such as a teacher with student, health care services to low income and seniors, or law enforcement on the streets. Would require executive action.

Ensuring Government Works for the People

Mike Bouchard believes that the public has a right to know how their hard-earned money is being spent and how well its government is performing.

➢ Require a two-year state budget with a three-year forecast. Michigan needs to change the way it manages our finances. The current budget process only considers the upcoming fiscal year, ignoring the long-term effects that tax and spending decisions have on the fiscal health of the state. Bouchard would require that a two-year budget be in place by May 15 so schools and local units of government have ample time to plan their budgets. Would require a constitutional amendment.

➢ Ensure that the budget is completed timely and accurately, by requiring an independent financial audit of state finances, that the governor to propose a balanced budget and each chamber only pass a balanced budget. Would require constitutional amendment.

➢ Commence a part-time legislature and reduce pay to a part-time level as well as eliminate health care benefits. Would require constitutional amendment.

➢ Change the current term limit system that allows an individual to serve six years in the House and eight years in the Senate for a total of 14 years to a system that allows an individual to serve a total of 12 years in any combination between the two chambers. This will eliminate the incentive to jump chambers and encourage members work across the aisle and between chambers.

➢ Dock the pay of the Legislature and governor each day the budget is delayed. Would require constitutional amendment.

➢ Create a Taxpayer Disclosure Act that requires all state agencies post every check written online for the public to see. Bouchard will also mandate that salary and benefit information including the unfunded liabilities associated with those benefits are available for public review. This information will be prepared and disclosed in accordance with accounting standards used by private sector employers. Would require executive action.

Benchmark government performance. The most successful businesses know how they stack up to their competition. To improve performance, Bouchard will adopt a private sector approach to running state government that includes benchmarking the state’s performance to that of the private sector as well as competitor states and nations. Michigan will know what policy is needed to be more competitive with other states and the world. Programs that do not contribute to improving the overall business climate in Michigan will face elimination. Would require constitutional amendment.