The House Democrats called on Gov. Rick Snyder and legislative Republicans to go back to the drawing board and not continue to rush, as they do every year, on their proposed fiscal year 2017 budget, which will require several adjustments as the result of lower than expected revenues and increased costs in the Department of Health and Human Services.
“The governor and his Republican leaders promised us that giving corporations billions in tax breaks would help our state. Today’s bad news is just one more example of their failed policies,” said House Appropriations Committee member Rep. Pam Faris (D-Clio). “Yet again we are faced with a funding shortfall for education and services for seniors and working families. It’s painfully obvious that Lansing Republicans need to reevaluate their priorities.”
According to the CREC, General Fund revenue for fiscal year 2017 from January estimates is down an additional $75.4 million, School Aid totals down $83.8 million for a total of $159.2 million. Looking ahead to fiscal year 2018, estimates are down by $62.5 million overall as compared to the January estimates. There were concerns presented regarding sales tax collection, and while presenters seemed to believe that the decrease in CIT collection could be described as a blip for fiscal year 2016, Democrats expressed concerned regarding the volatility of this tax.
“If Republicans want to tout Michigan as a state of growth and good fortunes for all, they have to realize that a majority of the people they were elected to serve are forced to pay more and more each year as Republicans continue to push a broken system that only helps big businesses,” said House Democratic Floor Leader Sam Singh (D-East Lansing). “The numbers don’t lie, and Gov. Snyder and legislative Republicans can’t hide from the fact that their numbers are a failure, and not a beacon of opportunity in this state.”