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Michigan state budget

Michigan's Gov. Rick Snyder signed the FY2012 $47 billion state budget into law on June 21, 2011.^[1][2] The budget eliminates $1 billion in corporate taxes and initiates taxes on pensions. It also cuts school funding by 2.2%, higher education funding by at least 15% and lessens aid to local governments by $100 million.^[1][3]

The state's fiscal year begins on October 1st and ends on September 30th of the following calendar year.^[4]

Michigan has a total state debt of approximately $125,329,485,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the budget gap. ^[5]

See also: The Michigan State Budget on State Budget Solutions

[edit] FY2013 State Budget

State Senate Majority Leader Randy Richardville said in early Jan. 2012 that budget negotiations for FY2013 were taking place at the state Capitol and he expected the budget to be done several months ahead of the constitutional deadline of October 2012.^[8]

The Senate proposal will likely differ from the Governor's as follows:^[8]

• $25 million less than Snyder proposed for the state department handling technology,
• $45 million less on the state prison system,
• $35 million less for the Department of Human Services,
• $15 million less for the Department of Community Health,
• $5 million less for the Michigan State Police.

Legislative proposed budget

Republicans, who control the Senate, plan to spend roughly $150 million less overall than what Gov. Snyder proposed for FY2013 due to lower-than-anticipated tax revenue.^[9]

Governor's proposed budget

Gov. Rick Scott unveiled his $48.2 billion proposed budget for FY2013 on Feb. 9, 2012. The proposed budget can be found here. Under the proposal, the state's general fund will total $9.2 billion, while the school aid fund would be $11.4 billion. The proposed transportation budget totals $3.3 billion.^[10] The budget includes a $457-million onetime surplus from 2011 and about $630 million in projected increased revenues for 2012 and 2013. Snyder's plan socks away $130 million to boost Michigan’s Rainy Day Fund.^[11]

Education and health and human services account for 75% of the proposed budget.^[12] It is also the first budget in more than a decade to increase funding for local governments, allocating an extra 2% for constitutional revenue sharing, plus additional money municipalities would compete for based on adopting "best practices."^[13]

Highlights of the governor's proposed budget include:

• offering $200 million to K-12 school districts that engage in best practices;^[10]
• increasing funding to state universities by $36.2 million or 3 percent, with much of it tied to performance incentives and keeping tuition hikes to no more than 4 percent;^[10]
• $119 million from the general fund to fix up roads and bridges;^[11]
• $50 million in increased public safety funding, with a focus on Detroit, Flint, Pontiac and Saginaw;^[10]
• $209 million for thew newly created Michigan Office of Great Start, which focuses on early childhood education;^[10]
• $195 million to boost the state's economic development efforts, with a special emphasis on "economic gardening."^[10]

[edit] FY2012 State Budget

• See past state budgets

Gov. Snyder asked the legislature for $38.25 million from the state's general fund to pay a portion of the $106 million the state owes in interest on Michigan's $3.1 billion federal unemployment insurance debt. The remaining portion fo the interest payment will come from a state solvency tax that went into effect this year on Michigan employers, and from state unemployment penalty and interest funds.^[14]

On June 21, 2011, Gov. Rick Snyder signed the FY2012 $47 billion budget into law.^[2] The two budget bills signed by the governor were House Bill 4526 and House Bill 4325. The last time the state had a completed budget in place this early was 1981.^[3][2]

The budget assumes $265 million in savings in 2011-12 from employee concessions. The governor hopes to convince state employee unions to reopen their contracts to provide those concessions, and delayed making layoffs in September 2011. The union contracts do not expire until the end of the 2012 calendar year.^[15] One of the concessions the governor seeks is having employees increase the percentage of health care costs that they pay for from 10% to 20%. At the unions' urging, the governor agreed to study whether the state government had too many managers, and to consider reducing the number of managers. The state's ratio at the time the study started was 6 employees to each manager. The union claims that if the ratio was 7 to 1 that the state would save $75 million.^[16]

Before the budget was signed into law the state faced a projected $1.85 billion deficit in FY2012.^[17][18]

The governor said that the budget would foster a stable environment for business, due in large part to a tax cut that essentially does away with business taxes on companies except large corporations with shareholders. The elimination of that tax could cost the state $1 billion in revenue in FY2012.^[1] The budget taxes public pensions and reduced exemptions for private pensions.^[19]

The budget includes several cuts in funding. The $12.7-billion School Aid Fund gives districts $12.7 billion, $300 per pupil less than FY2011, a 2.2% reduction. However, school districts that show cost-cutting initiatives could receive additional funds from a $100-million fund. Public universities will see 22% less in state aid -- 15% if they hold down tuition costs to 7% or less. Local government will receive $100 million less.^[3]

The governor vetoed some portions of the budget bill, including a $4.25 million adoption subsidy,^[1] and he made it clear that some language in the bill was not legally enforceable, including provisions regarding universities offering health care benefits to employees' domestic partners and ignore some language in the bill that's not legally enforceable. That includes provisions added by Republican lawmakers that would have penalized universities that offered health care benefits to employees' domestic partners and requiring public universities doing embryonic stem cells to report data to the state.^[1][3]

The state receives about $400 million a week from the federal government, which is approximately 44 percent of the total state budget.^[20]

[edit] Deal negotiated

On April 12, 2011, the governor and legislative leaders announced that they had reached a budget deal that would modify the governor's proposed tax on pensions and delay a scheduled reduction in the personal income tax rate but also makes $150 million in undetermined spending cuts in addition to those originally proposed by the governor.^[21]

Taxes

The pension income tax exemption will continue but would exempt those aged 67 and older from the tax, and for those between 60 to 66 years old, the first $20,000 would be exempt for an individual and the first $40,000 for a couple. For retirees aged 59 and younger, pensions would be taxed at the full rate until they turn 67. All income, including Social Security income, would apply against that higher-than-normal exemption, he said. The tentative agreement would delay that planned income tax reduction to Jan. 1, 2013, generating an additional $210 million in revenue.^[21]

The legislature enacted a 6% flat tax on corporations, replacing the state's complex business tax and reducing corporate income taxes by $1 billion for FY2012, which starts Oct. 1. The Senate narrowly passed the measure, with Lt. Gov. Brian Calley casting the tie-breaking vote.^[22]

Education

On May 5, 2011, the House approved the its education funding bill by a vote of 57-53. The House proposal would cut school funding by an additional $256 to $297 per student. That's on top of a $170 per student cut that's already in place and would be carried over into next fiscal year. Funding for community colleges and universities also would be cut.^[23] The Senate Appropriations Committee is considering a bill that would reduce state aid by $340 per pupil.^[24] Differences will have to be reconciled before a budget can be adopted.

[edit] Governor's proposed budget

After being sworn in, Gov. Rick Snyder promised to have a two-year state budget in place by July 1, whereas the state has typically had a one-year budget and it has taken until Oct. 1 to finalize it.^[25]

The governor named John Nixon, Utah's budget director, as Michigan's new state budget director as of January 1, 2011.^[26]

In Feb. 2011, Gov. Snyder introduced a $45 billion budget intended to close a $2 billion budget deficit for 2012. The budget includes a series of cuts in several state departments. Snyder wants lawmakers to cut the state budget by $1.5 billion, boost income tax revenue by more than $1.7 billion and cut business taxes by $1.8 billion.

Prior to submitting his budget proposal, Snyder unveiled the Citizen's Guide to Michigan's Financial Health which lays out the state of the Michigan economy. The guide shows the state’s citizens are poorer, older and deeper in debt than they were a decade ago. The guide also shows that taxpayer obligations for pensions and health care for retired public workers are unsustainable. It also points out that the 15 percent of workers in the state who are public employees have seen their salaries rise over the last decade, while private employees in the state have experienced diminished paychecks and fewer job perks. ^[27]

To close the state's deficit, Gov. Snyder proposed a new tax on pensions and a flat corporate tax that would end billions of dollars of tax incentives. He also proposed reduce funding to municipalities, education budgets, and public retiree health benefits.^[28]

Central to the budget is a reshaping of tax policy that eliminates the state's complex business tax and replaces it with a flat 6 percent corporate-profit tax that would raise about $1 billion less revenue. ^[29] Some of Snyder's proposals include: ^[30]

• Dropping the individual income tax rate from 4.35 percent to 4.25 percent.
• Remove the Michigan Earned Income Tax Credit that provides an average $432 benefit to some 800,000 low-wage filers
• Eliminate the state income tax exemption for pensions.
• Eliminate business credits awarded for films.
• Eliminate statutory revenue sharing payments for cities, villages, and townships in Fiscal Year 2012, leading to a net savings of $92.1 million.
• Cut per pupil funds $300, in addition to the currently budgeted $170 per pupil reduction.
• Eliminate 300 field worker positions in the Department of Human Services.
• Close one prison to be named later this year.
• Reduce the number of Michigan State Police posts, saving $3.2 million.
• Reduce state aid to libraries in the Department of Education budget by $2.3 million in the general fund, with $950,000 directed to the Michigan eLibrary, resulting in net savings of $1.4 million.
• Sets a lifetime limit of 48 months for residents to receive welfare payments, with exemptions for incapacity and hardship.

The proposal also has $200 million for a new incentive-based revenue sharing program for cities, villages, and townships. Those standards will be detailed in March.

Snyder also plans to tax the pension income of senior citizens to the tune of $900 million in order to offset losses from a $1.9 billion cut in business taxes. ^[31] Current Michigan law exempts all Social Security, public pension payments, IRA, annuity and employer-contributed 401(k) withdrawals from income tax. Under proposed law, all retirement income, except for Social Security, would be taxed at a 4.25-percent rate. Snyder said senior citizens make up about 13 percent of the state's population today, and that figure grows close to 20 percent over the next 20 years.

He later revised his original pension tax proposal, calling instead for raising about $300 million through retiree income tax changes. That plan was passed by the House Tax Policy Committee on April 27, 2011.^[32]

Over the first decade of the new millennium Michigan was in a recession as its manufacturing base crumbled and its population declined. During that time special interests and lawmakers fought over dwindling revenues. When Snyder was elected in 2010 he announced there were going to be shared pains in the new budget, including attempts to change the tax status of pensions. In Michigan, public pensions are fully tax-exempt and private pensions are exempted up to $42,240. ^[33] In 1997 Michigan shifted to a defined contribution retirement plan for its public employees.

Snyder is hoping the legislature will pass his budget plan by early May.

It is unlikely all of Snyder's goals will be included in the final budget passed by the legislature. State lawmakers told the South Bend Tribune that cuts are necessary, but the final budget may show cuts in areas other than what Snyder proposed. ^[34]

Education Cuts

School administrators fear Gov. Snyder's proposed cuts will force school districts to cut staff, close buildings, privatize some services, create more online courses and cause administrators to share more duties, measures Snyder maintains will cause school districts to become more efficient while still providing an excellent education. Michigan has more than 500 school districts.^[35] More than half of Michigan's school districts include fewer than 2,000 students.^[36]

Snyder proposed cuts between 8 and 10% for school districts, which translates into a $715-per-student reduction. Those reductions include the loss of $170 per student in federal money, a $300 cut by Snyder in per-pupil funding and the fact that districts have to pay a bigger share of pensions, costing them $245 per student, according to the nonpartisan Citizens Research Council.^[37]

Several media outlets in Michigan, including the Detroit Free Press, are calling for the consolidation of some school districts following the release of a 2010 Michigan State University study. The study said taxpayers could save $612 million a year after three years by consolidating districts around county lines, without closing any schools. Putting all public school transportation, food service and operations and maintenance at the county level would save $328 million, the study said.^[38]

Snyder also proposed to shift $896 million in the school aid fund to colleges and universities. The proposed shift from that fund, typically used for k-12 programs, angered public educators who say institutes of higher learning have other means to raise funds. ^[39]

Snyder has not thrown support behind bills in the legislature that would eliminate tenure, freeze teachers' pay if a contract expires, force teachers to pay at least 20 percent of their health care costs or otherwise affect collective bargaining rights. ^[40]

Snyder's proposed educational budget cuts are not popular. According to an EPIC-MRA poll, 62 percent oppose Snyder's plan, with 32 percent in favor and 6 percent undecided. The poll surveyed 600 likely voters from Feb. 26 through Tuesday and had a margin of sampling error of plus or minus 4 percentage points.^[41] According to Ann Arbor school leaders, the district was facing a $7 million deficit, but if Snyder's proposals are approved, that deficit could jump to between $15 and $20 million. ^[42]

Union protests

On Feb. 22, 2011, hundreds of union members lobbied at the state Capitol, urging lawmakers to vote against measures they say would threaten collective bargaining rights, while smaller groups of activists rallied outside the Capitol against other budget proposals, including the elimination of some tax exemptions and reductions in school funding.^[43]

Union members are upset over the Republican-controlled legislature's attempts to take away binding arbitration, which allows a neutral party to determine what is and isn't fair in contracts for police and fire departments. ^[44]

Other legislative proposals angering Michigan union leaders include emergency financial managers powers to remove elected officials and break labor contracts as they work to turn around failing schools and cities. ^[45] The measures change the way emergency financial managers are selected and expand their authority, including suspending collective bargaining for up to five years and rejecting labor agreements.

Other proposals raised by Michigan lawmakers that upset labor organizations include a plan to create right-to-work zones and repeal the prevailing wage law.

Some of the protesters at the capitol are also protesting Detroit Public School’s emergency manager Robert Bobb’s plan to close public school, which will increase class sizes to 60 students. The deficit elimination plan filed with the state in January by emergency financial manager Robert Bobb, is expected to wipe out the district's $327 million deficit by 2014. ^[46]

The American Association of Retired Persons is planning to protest Snyder's proposal to tax senior's pension payments. The AARP called Snyder's proposals an "all out attack on older Michiganders." ^[47] Current AARP Michigan President Eric Schneidewind says the measure would take money from seniors and hand it to corporations. ^[48]

On March 16 a host of progressive groups, led by state unions, will protest at the state capitol on a range of issues including budget proposals and 40 pieces of legislation that activists say would undermine collective bargaining rights in the state. ^[49]

[edit] Budget transparency

• See sample transparency legislation at the Sunshine Standard

At present, no department of Michigan state government provides a comprehensive and searchable online checkbook register that gives a full and timely accounting for all expenditures. Spokespersons for the office of Michigan governor Jennifer Granholm have asserted that providing such a service for all of Michigan state government would cost in excess of $100 million, and is thus cost-prohibitive given the state's recurring inability to align desired spending with available revenue.^[50]

[edit] News

• State Rep. Tom McMillin, R-Rochester Hills, said he has pushed for Michigan to follow Missouri's lead and post more information online but was told that it would cost $100-150 million to put data on the Internet the way Missouri has done.^[51] Gov. Snyder's spokeswoman said those estimates "seem to be somewhat off base."^[51]

• Proposal to open budget meetings: In January of 2010 State House and Senate members considered a proposal, which would open traditionally closed state budget meeting to the public. The reform is building off other proposals such as earlier deadlines for adopting a budget and docking lawmakers' pay for not adopting a budget in time.^[52]

• Michigan Department of State provides first online expenditure report:On April 23, 2008, Michigan Secretary of State Terri Lynn Land announced that the Michigan Department of State would begin posting quarterly expenditure reports.^[53] These reports provide the names for most of the recipients of departmental funds, the general category for the expenditures and the total amount paid during the preceding quarter.^[53] The MDOS made the decision to post this expenditure report after a request from the Mackinac Center for Public Policy's "Show Michigan the Money" transparency project.^[54] The MDOS report is presently the only regular accounting of expenditures provided by any department of state government. The MDOS report does have limitations. It is provided as a searchable PDF document, but does not provide check numbers nor is it subdivided by date for individual transactions. The reports also do not provide the names, titles and salaries paid to departmental employees. (However, the names of employees and amounts paid to them for travel and other work-related reimbursements are included in the reports.)
• Governor's response to lack of online "check register":Democratic Governor Jennifer Granholm has responded to calls to put the state "check register" online by asserting that current information systems could not provide this information, and making the capable of doing so would be too costly. An April 9, 2008 report by the Michigan Information News Service (MIRS, subscription required) reported that a letter to House leaders from state Department of Information Technology (DIT) director Ken Theis said that the state's financial accounting mainframe computer system acquired in the in 1980s would require "extensive" upgrades costing between $100 million and $150 million to produce the kind of searchable spending database that Missouri has created. The point of the Mackinac Center request referred to above was merely to ask state departments to replicate the Secretary of State standard, leaving them to decide whether or not they wished to exceed it. As reported on the Mackinac Center's "Show me the money" website, using the same mainframe computer system the Michigan Secretary of State department posts quarterly spending reports at an initial cost of $2,400, and $700 for each new quarterly report. If those figures were extended to the entire state government the initial cost to produce similar quarterly reports would be $516,000, and $129,000 per quarterly report, or 0.0012 percent and 0.00035 percent of the annual budget, respectively.^[55] The reply to the Mackinac Center's request from the Office of the Governor also addressed employee salary information, stating that "this level of detail provides little value to the taxpayer."^[56]
• In February 2009, two freshmen Republican members of the Michigan House (Amash and McMillin) began posting detailed records of their own office spending, including itemized monthly expenditures by category, and the names and salaries of their legislative aides. The House Republican caucus has claimed that it is posting detailed spending data, but to date these two legislators are the only ones actually doing so.

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary
Michigan Transparency and Accountability	N	N	P	N	Y	N

See also: Evaluation of Michigan state website

[edit] Independent transparency sites

The Mackinac Center for Public Policy has a transparency website, "Show Michigan The Money"

The National Taxpayers Union produces an "www.showmethespending.org" website, with weekly transparency e-updates. This is expected to include Michigan data at some point.

[edit] FY2011 State Budget

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government here.

The state brought in more revenue than previously expected for the fiscal year that ended Sept. 30.^[57] State budget officials said in Jan. 2012 that there was an unanticipated surplus of $457 million. The Attorney General wanted to use that money to hire more police officers, but lawmakers said they did not want to spend one-time revenue on long-term spending.^[58]

The state legislature passed the FY2011 $8.3 billion state budget on September 29, 2010.^[59] Then-Gov. Jennifer Granholm signed the budget the following day.^[60] ABC News "Michigan Lawmakers Finish Passing State Budget" Sept. 29, 2010</ref> The budget increased spending by $500 million from the prior year's budget.^[61] The state eliminated a $484 million deficit in the 2011 fiscal year, which begins Oct. 1, 2010.^[59][62] The state did so in part by relying on more than $1 billion in one-time, extra federal assistance.^[59]

The budget does not raise taxes.^[59] The budget does, however, make cuts in many other areas.^[59] Cuts to the budget include lessening state aid to 15 universities for operation by 2.8%.^[63] and cutting $42 million from prisons.^[61] The state police funding will be reduced by $8.8 million to $529 million.^[61]

One of the key aspects of the budget is a state employee retirement incentive program.^[64] The plan could save the state $80 million in its first year but is expected to be subject to legal challenges once it is signed into law.^[59] ivil service employees received a 3% raise that cost the state about $45 million, but employees also had to pay 3% of their pay into retiree health care benefits.^[61] In Aug. 2011, a state appeals court ruled that the move violated the Michigan Constitution.^[65]

K-12 education funding rose slightly to $13.2-billion due to the receipt of federal stimulus and onetime federal money of $316 million.^[61] Lawmakers reinstated $84 million to the transportation budget so that the state could qualify for $470 million in federal funds for highways.^[61]

To generate revenue, the budget includes a measure to change and accelerate how the state accounts for unclaimed property.^[66] The move could generate $208 million from forgotten and/or misplaced bank accounts, payroll checks and safety deposit boxes.^[67] It also permits the sale of liquor on Sunday mornings for establishments that purchase a $160 license to do so.^[59] Another revenue generator in the budget is the tax amnesty program, which lifts penalties for nonpayment of taxes and could generate $60 million in back tax and interest collections.^[61]

The budget takes into account paying out movie tax credits of $119 million, up approximately 20% from the prior year.^[61]

[edit] Federal Funds

Michigan received approximately $700 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[68][69]

[edit] Vetoes

In Oct. 2010, Gov. Jennifer Granholm vetoed some elements of the state budget. She vetoed the formula the Legislature approved in Sept. 2010 to distribute the $316 million the state received from the federal government for education.^[70] The governor said that the plan, which would give districts $154 per pupil, plus another $23 per pupil to $46 per pupil, violated guidelines provided by the U.S. Education Department.^[70] The legislature will develop a new plan when it reconvenes again after the November elections, with lawmakers anticipating that a revised formula likely give more money to lower-spending districts^[70]

Gov. Granholm also vetoed a bill permitting liquor sales on Sunday mornings and Christmas Day because she objected to provisions that allow restaurants to supply their own alcohol at events they cater, allowing store that sell alcohol to permit wine and beer tasting, and allowing community colleges to provide alcoholic drinks for culinary arts programs.^[71]

[edit] Governor and Legislative Leaders Proposals

The governor and legislative leaders Republican Senate Majority Leader Mike Bishop and Democratic House Speaker Andy Dillon reached an agreement on a state spending plan for FY2012 that includes an early retirement plan for state employees and does not raise general taxes.^[72] The deal closes a projected $484-million deficit for the spending year that starts Oct. 1.^[72] It calls for 3% cuts to state departments, debt refinancing and other bookkeeping measures, along with a reported early retirement plan.^[72] The early retirement plan has been a sticking point for Democrats in the Legislature, many of whom described earlier versions of the proposal as inadequate.^[72] In addition, the deal includes a tax amnesty program, an expansion of liquor sales and altering state rules on unclaimed property to boost the state's coffers.^[72]

The tentative agreement also calls for state workers to contribute 3% of their salary toward retiree health care costs, which would be phased in over five years. and amount to a $1,620 pay cut for the average state worker, who makes about $54,000 a year.^[73]

Bipartisan committees of Senate and House members will iron out specifics of budget proposals before putting them up for votes in the Legislature.^[74] The state work retirement proposal could prove to be one of the toughest proposals to sell, particularly in the Democratic-run House.^[74] Under the plan, employees on the job would have to contribute more. For those eligible to retire, the plan sweetens pension benefits and for employees not yet eligible to retire but who meet certain age or years-of-service requirements also could get better pension benefits. Pfficials estimate that roughly 3,500 to more than 6,000 of the 12,000 eligible might retire if offered the deal.^[74]

[edit] Budget Background

The Michigan Constitution requires the Governor to propose an Executive Budget for state activities on an annual basis. By law the Executive Budget must be submitted to the Legislature within thirty days after the Legislature convenes in regular session on the second Wednesday in January. However, when a newly elected Governor is inaugurated into office, sixty days are allowed to prepare the proposal. The Executive Budget is more than a statutory requirement. It represents a statement of priorities for the policy activities of state government. Therefore, a detailed budget preparation process is necessary to provide information that will help the Governor and the Legislature allocate state resources most effectively. The budget process can be broken down into four stages:^[75]

According to the Michigan Constitution, no appropriation is a mandate to spend. The Governor, by Executive Order and with the approval of the appropriations committees, can reduce expenditures whenever it appears that actual revenues for a fiscal period will fall below the revenue estimates on which the appropriations for that period are based. By statute, any recommendation for the reduction of expenditures must be approved or disapproved by both of the Appropriations Committees within ten days after the recommendation is made. A reduction cannot be made without approval from both committees; not later than thirty days after a proposed order is disapproved, the Governor may submit alternative recommendations for expenditure reductions to the committees for their approval or disapproval.^[76]

[edit] Budget figures

The following table shows total state spending in recent years.

General Fund^[79]

[edit] Accounting Principles

Main article: Michigan government accounting principles

The Michigan Office of the Auditor General has the responsibility, as stated in Article 4, Section 53 of the State Constitution, to conduct post financial and performance audits of State government operations. In addition, certain sections of the Michigan Compiled Laws contain specific audit requirements in conformance with the constitutional mandate. Thomas H. McTavish has served as Michigan Auditor General since 1989. Michigan's audit reports are published online.^[80]

The Institute for Truth in Accounting (IFTA) rates Michigan “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Michigan's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.^[81] Michigan's CAFRs are published online by the Michigan Office of State Budget, Office of Financial Management. Michael J. Moody is the Director Office of Financial Management. Bob Emerson is the Director of the Office of State Budget.^[82]

In July 2011, Fitch Ratings revised its outlook for Michigan bonds from "stable" to "positive," while leaving the state's overall rating at AA-.^[83]

[edit] Stimulus

Michigan received $8.6 billion in federal funding.^[84]

[edit] Public Employees

Main article: Michigan public employee salaries

Main article: Michigan public pensions

According to 2008 Census data, the state of Michigan and local governments in the state employed a total of 600,755 people.^[85] Of those employees, 396,691 were full-time employees receiving a net pay of $1,789,954,900 per month and 204,064 were part-time employees paid $210,303,706 per month.^[85] More than 60% of those employees, or 361,757 employees, were in education or higher education.^[85] Michigan state workers today receive approximately 47% more in total compensation than their private-sector counterparts.^[86] The average state worker, who makes about $54,000 a year.^[87]

[edit] See Also

• Michigan taxpayer-funded lobbying
• Michigan public pensions

[edit] External links

[edit] Additional reading

• Gov. Jennifer Granholm,"State of the State address 2010," February 11, 2010
• Gov. Granholm,"State of the State address 2009"
• Lansing State Journal,"40 ways to cut the Michigan budget deficit," May 17,2009
• Associated Press,"More bad news ahead for Michigan state budgets," May 13,2009

[edit] References

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