Michigan State AFL-CIO eActivist Network
Fix Michigan's Budget Mess Now

Michigan is now facing its most critical financial crisis in decades. The Governor and the legislature are faced with a $800 million deficit in 2007 and a $3 billion shortfall in 2008. Immediate action must be taken to increase state revenues to avoid the devastating impacts that a “cuts only” solution to the deficit would have on essential public services.

Please send an email today to your State Representative and State Senator urging them to take action now to solve the budget crisis before it's too late.

Sample Letter for Campaign

Subject: Fix the Budget Crisis Now!

Dear [ Decision Maker ] ,

Michigan is facing a budget crisis that gets worse every day that the legislature fails to act on the Governor's Budget and Revenue proposal. It is time for you to find a comprehensive solution to the budget crisis.

The solution must generate at least $1 billion in new revenue and completely replace the SBT with a new tax on business. We have to do this without cutting any more out of an already gutted state government. $4 billion has already been cut from the budget and we cannot afford more cuts to vital services.

I support the Governor's proposal because it accomplishes those things while asking business to pay their fair share. Any alternative plan must raise at least as much revenue as the Governor's plan and be acted upon quickly.

Sincerely,

Campaign Launched:
March 15, 2007



Background Information

An Overview of Michigan's Financial Crisis

This situation did not develop overnight. While he was governor, John Engler signed 32 tax cuts into law, including the elimination of the state inheritance and capital gains taxes, and annual reductions on taxes to businesses.  After 12 years of Engler tax cuts and six years of Bush tax cuts, we have (again) proven that the Reaganomics of a "trickle-down" economy don't work! 

As the state suffers through a prolonged economic downturn, high unemployment and a resulting increased demand for state services. Today, we are not collecting enough revenue to meet our needs but more tax cuts and more budget cuts are just more of the same, and that's not the answer.

More than $4 billion has been cut from state services and programs since 2001. Higher education spending has been cut by more than $250 million forcing students and their families to deal with significant tuition increases. Public schools have faced mid-year spending cuts twice. Spending for local governments, primarily police and fire protection has been cut by $585 million resulting in a loss of police officers.

Despite these actions, the state does not bring in enough money to fund the health care, education, safety and other services it provides to citizens. When the state Legislature eliminated the Single Business Tax (SBT) last year, it eliminated nearly $1.9 billion in revenue the state uses to fund health care, education and police and fire safety. That shortfall compounds an already challenging situation with both the state's education and general fund budgets.