Michigan is Shutting down!!

[NightCrawler]

LANSING - Governor Jennifer M. Granholm today said that while she remains committed to protecting the health and safety of Michigan residents during a government shutdown, citizens will be impacted if legislators fail to act before Monday. Granholm made the announcement as she continues to negotiate with state lawmakers who have yet to approve a comprehensive solution to the state's budget crisis.

"Seven months ago, I proposed a comprehensive solution that would have resolved the state's budget crisis through a combination of budget cuts, government reforms, and new revenue," Granholm said. "Since then, the Legislature has failed to agree on my solution or any other. Their failure to act has brought us to this day. They need to act with urgency on a balanced budget and send the bills to my desk."

The governor has pledged to work with lawmakers as long as it takes to resolve the budget crisis but said that without an agreement, the state must initiate a government shutdown today, since it is the last business day of the current fiscal year. The new fiscal year begins Monday, October 1.

Government shutdown details include, but are not limited to:
...
http://www.michigan.gov/som/0,1607,7-192--177036--,00.html

http://www.cbsnews.com/stories/2007/09/28/national/main3309295.shtml

[Nighthawk]

Damn ... and I thought things were bad down here in redneck Texas.

[Anonymous]

Uh, that's ridiculous. Shutting down the infrastructure is supposed to help Michigan's economy how, exactly?

[NightCrawler]

Uh, that's ridiculous. Shutting down the infrastructure is supposed to help Michigan's economy how, exactly?

First of all, without a budget agreed upon with the new fiscal year starting(tomorrow), they have no authority to bring in their state-employed workers to get paid. There are other issues, but all of which I am far from certain.

[Zergling]

Damn ... and I thought things were bad down here in redneck Texas.

Michigan has had quite bad employment problems lately (This summer one of my mom's friends mentioned that people were talking about Michigan in similar terms as Arkansas, Mississippi, and such.)

[outmywindow]

I thought this would be about the football team...

Seriously though, the same thing happened in New Jersey a few years ago.

[INTPFemme]

I thought this would be about the football team...


:cheer: Hail to the victors valiant, Hail to the... :cheer: Oh sorry.



What in the world is going on up there? I must say I am oblivious to the situation. No one in my family (up in the great white north of Michigan) has really talked about the government issues so this is the first I have heard of it. Sad though. Sounds like some fires need to be lit under a few people to get everything back on track. I agree with Anonymous shutting down the government is not really the way to go but then again what is the right solution?

[NightCrawler]

CUT SPENDING. ... in my opinion.

[Apostasius]

CUT SPENDING. ... in my opinion.

Where would you cut spending?

Michigan's problems, like most large-scale state budget problems, are complex.

[NightCrawler]

Where would you cut spending?

Michigan's problems, like most large-scale state budget problems, are complex.

That is a good question, and not one I can fully answer. I don't know where all the money is going.

[Lateralus]

When I saw the thread title, I thought you were talking about the Wolverine's defense. Then I started reading and was disappointed.

[Leftfield]

I wouldn't be surprised that in the long-run this will happen to other Midwest states without a mega-corporate presence... "the trend"... it just seems like we Midwesterners are struggling to catch up with the East and West Coast peeps... no care of innovation here, but at least its cheap to live here! I still wonder how the employment levels and income will continue to keep rolling in.

I'm glad that Ohio has a load of the regional banks headquartered in the state (Key Bank, Cleveland; National City Bank, Columbus; Fifth Third Bank, Cincinnati) and Proctor and Gamble in downtown Cincinnati to fund the state and local governments through the massive corporate taxes rather than through income taxes that may shrink through rising unemployment and what I would expect short-term stagnate wages.

Michigan, however, is pretty fucked... it looks like Detroit is junk and Grand Rapids never panned out to be the metropolis once visioned. With GM and Ford on a mission to sell their businesses to someone bigger, they may be able to salvage some jobs that way... with their market cap stagnate and no signs of future, the last thing standing in the state will be the University of Michigan and Michigan State University :)

But really... who the fuck wants to move to Michigan (or Indiana) unless that have lake-front property on Lake Michigan facing Chicago?

[immortalmack]

Quite simply MI needs to export more stuff. The californians export cars,wine,cheese, aerospace,computers,porn etc. Mi exports.....cars.
We need to diversify our industry.
But honestly I don't know too many people who don't have jobs.
There's plenty of good ideas here but people need resources to get started.
But also in reality we have some of the dumbest damn politicians in the country. Worst than Texas.

[Anonymous]

So, I assume that there many people in Michigan sitting at home doing nothing, right now? Well, if nothing else, Michigan's bars are going to start doing well.

[NightCrawler]

Quite simply MI needs to export more stuff. The californians export cars,wine,cheese, aerospace,computers,porn etc. Mi exports.....cars.
We need to diversify our industry.
But honestly I don't know too many people who don't have jobs.
There's plenty of good ideas here but people need resources to get started.
But also in reality we have some of the dumbest damn politicians in the country. Worst than Texas.

Right now we have Kellogs and Faygo. w00t.

Businesses would stay here and get diverse if taxes on businesses were lower. Yet now it has been passed that services are now being taxed. WTF.

[NightCrawler]

So, I assume that there many people in Michigan sitting at home doing nothing, right now? Well, if nothing else, Michigan's bars are going to start doing well.

I was told that bars are going to take a hit, as in many of them will shut down during this time due to regulations as well. It means more keggers though.

[Oso Mocoso]

So, I assume that there many people in Michigan sitting at home doing nothing, right now? Well, if nothing else, Michigan's bars are going to start doing well.

I predict an uptick in MI's methlab economy.

--Oso

[Ferrus]

Surely the police are on the government payroll too?

[NightCrawler]

Surely the police are on the government payroll too?

Yes, but according to the link, they will not shut down the state police units.

[NightCrawler]

An update on the situation:

AGREEMENT IS REACHED

State legislators have reached a comprehensive budget agreement to end a government shutdown. State government will be open for business on Monday, October 1 and all state employees should report for your next scheduled shift.

The budget agreement includes reforms and new revenues that will fund the vital work of state government and help Michigan avoid the types of structural budget issues that have contributed to recent financial problems.

The notice of temporary layoff you received on Friday, September 28, 2007 is no longer in effect. Again, all state employees are expected to report for work at the beginning of your regularly scheduled shift on Monday, October 1, 2007.

More information on the details of the agreement will be provided via your department director and supervisors.

Thank you for your patience and commitment throughout this difficult process.


LANSING -- Michiganians went to bed Sunday night with the state nearing its first government shutdown and awoke to a $1.35 billion tax hike, among the largest in state history.

An 11.5 percent income tax increase and expansion of the 6 percent sales tax to a strange brew of services will close most of the $1.75 billion hole in the state budget year that began Monday.

Gov. Jennifer Granholm billed it Monday as a $1 per person increase per week for the average Michigan household.

"This is a solution, not one of celebration but one of resolve," Granholm said the afternoon after the state avoided a major shutdown with a budget deal that called for tax hikes and as-of-yet unspecified $440 million in budget cuts and long-range government reforms. "This puts the state on solid fiscal footing and will allow Michigan to move forward."

State Treasury officials estimated the income tax increase from 3.9 percent to 4.35 percent, which took effect Monday, will cost the average family $157 a year. That's for a family of four with an income of $55,000 per year.

It begins to ratchet down gradually in 2011 and returns to 3.9 percent by 2015. The service tax -- on items such as landscaping, ski lifts, janitorial services, investment advice, carpet cleaning and tanning -- will cost that same family about $50 a year when it takes effect Dec. 1.
[...]
http://www.detnews.com/apps/pbcs.dll/article?AID=/20071001/UPDATE/710010459/1001/BIZ

o.O

[Anonymous]

Well hey, that's the good thing about citizens. If the government ever fucks up badly, they can just use the money those guys make to cover their mistakes!

[Bradtv]

We've got the 3rd highest paid legislature. They're the ones who sign our names to foot all the bills. Unicameral system baby.

I don't have much of a problem with state taxes. The money goes somewhere decent. I'm not so fond of the federal income tax, but even if Ron Paul gets elected it'll be an uphill battle of ignorance.