|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MNA Members (login) | 
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PUBLIC POLICY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
About MNA Public Policy News Events Public Policy Resources Projects and Campaigns
|
State Budget NewsWhat's New with the State Budget? February 7, 2008 Executive Budget Proposal for FY 2008-09 Released Today The Executive Budget proposal for Fiscal Year 2008-09 was released today. Some of the biggest changes in the proposed FY 2008-09 budget over the current fiscal year include:
The FY 2008-09 Budget proposal also recommends $8.5 million for arts grants and $10 million in funding for local libraries. The January 2008 Consensus Revenue Estimating Conference projected that general fund revenue for the upcoming fiscal year will be approximately $234 million below the estimate used to enact the budget last year; however, the state experienced a surplus this year of $259 million in the general fund and $84 million in the School Aid Fund. That surplus will be used to supplement the projected revenue shortfall for this fiscal year and provide a $100 million deposit into the state's Rainy Day fund. The $44.8 billion Executive Budget proposal for FY 2008-09 can be viewed in more detail on the State of Michigan website at http://www.michigan.gov/budget/. MNA continues to urge the adoption and passage of a budget that invests in Michigan and does not make cuts to critical services. December 3, 2007 Services Tax Repealed; Revenue Neutral Replacement Adopted The expansion of the Michigan Sales Tax to a select group of services was repealed on Saturday, replaced by an added surcharge to businesses under the Michigan Business Tax (MBT). This surcharge will provide a revenue neutral replacement of the $614 million estimated to be collected through the expanded sales tax during the first fiscal year and the approximately $750 million it will collect during subsequent fiscal years. The repeal of the expanded sales tax took place approximately 15 hours after the measure had gone into effect. Both legislative chambers also passed and the governor signed a bill to give amnesty to businesses who did not collect the tax during its brief period of implementation, and businesses who did collect the tax are required to refund it in full. The surcharge to Michigan businesses (HB 5408) under the MBT will go into effect on January 1, 2008, the date of implementation for the MBT. The surcharge is set at 21.99%, with a $6 million cap on any one company's liability. Also included is a requirement that the legislature review the surcharge in 2017 and determine whether there has been an increase in personal income during the previous three fiscal years. If an increase in personal income is determined to have taken place, the surcharge would then sunset. Estimated revenues from the surcharge equal approximately $750 million for each full state fiscal year (October 1 - September 30). October 31, 2007 State Budget Passes The Michigan Legislature completed their work on the FY 2007-2008 state budget at about three o'clock this morning. The resolution came just in time as the continuation budget previously authorizing state expenditures expires at midnight tonight. The budget as passed, while balanced (with the exception of the DEQ, whose budget already includes a shortfall and will require modification before the end of the fiscal year), does not address the structural problems of our state budget. Michigan Nonprofit Association (MNA) continues to urge policymakers to examine and resolve those structural issues. MNA has been actively involved in urging lawmakers to pass a balanced budget that makes no more cuts to essential services. Thanks to each of you who contacted your state legislators and urged them to act quickly in passing a responsible, balanced budget. Below is a summary of several state department budgets as adopted. The Department of Human Services (SB 232) was the last of the state department budgets to be adopted, held up for debate over the privatization of several services. The final budget included spending reductions, concentrated within juvenile justice spending. However, despite overall spending reductions, the number of jobs within DHS will increase by 171 over the number of individuals employed during FY 2006-2007. The General Government budget (SB 229), which includes the Legislature, Executive Office, the Departments of Treasury and Management & Budget, among others, received a 4.3% increase in funding over the last fiscal year. While the overall General Government budget received an increase, the various departments within this budget were impacted in different ways. Over $230,000 was added to the budget for real estate fraud investigations, nearly $1 million was added as a reimbursement for deputy registrar training and the processing of voter registration applications, and the Department of Treasury received an additional $9 million for administration of the new Single Business Tax, increased income tax and expanded sales tax (though Treasury was also the recipient of cuts in other areas). The Department of Environmental Quality budget (HB 4358), though passed, is expected to face a budget shortfall in the near future. An increase in fees, cutbacks to the department's operations, or a combination of the two will be necessary for the DEQ's budget to balance for the full fiscal year. The Department of Corrections (HB 4348) saw an increase in funding of 6%, despite Michigan's prison population having decreased by 5%. Lawmakers voiced concern over the continued rising costs of prison expenditures and said they will be looking at ways to curtail these continued increases in the future. K-12 Education (HB 4359) provides for a per-pupil increase in funding of $48 - $96 (depending on the school district). Higher Education (HB 4350) provides a 1% increase for the state's public universities. The delayed payments from the last fiscal year will also be made. During the next several days, MNA will be posting more details about the different department budgets. October 29, 2007 Another State Government Shutdown is Looming A balanced state budget needs to be enacted by midnight on October 31, 2007 in order for the state to avoid another shutdown. October 31 is when the current continuation budget authorizing state expenditures expires. If a budget is not passed by November 1, another state shutdown could occur. Respected leaders from both sides of the aisle have approved new revenue as part of the budget solution in order to keep Michigan's education system competitive, our environment clean, our streets safe and to protect our most vulnerable citizens, children and the elderly. But the Legislature still must pass a balanced budget by Oct 31, or state government will shut down again. And the new budget must not make more cuts to essential services. Contact your legislators TODAY and urge them to pass a balanced budget by Oct 31 that invests in Michigan and makes no more cuts to critical services. Visit www.countdowntochaos.org for more information. October 23, 2007 Countdown to Chaos...It's Back! A balanced state budget needs to be enacted by midnight on October 31, 2007 in order for the state to avoid another shutdown. October 31, 2007 is when the current continuation budget authorizing state expenditures expires. If a budget is not passed by November 1, another state shutdown could occur. Please contact your state legislators TODAY and urge them to act quickly and responsibly by passing a balanced budget that protects essential services. Contact information for state elected officials is available at www.countdowntochaos.org. You can also download the Countdown to Chaos web sticker to your organization's website. The web sticker is available online at http://www.countdowntochaos.org/banners.html in both flash and static versions. The clock is ticking. Act now! October 1, 2007 State Budget Passes, includes Increased Revenues and Further Budget Cuts At about 4:30 this morning, the Legislature and the Governor came to an agreement on several budgetary items that allowed a 30-day continuation budget to be signed into law (thus halting a state government shutdown) and provided for further budget cuts, government reforms and increased revenues. Several important items that were adopted include:
501(c)(3) and 501(c)(4) Nonprofit Charitable Organizations continue to be exempt from the sales tax, including the expanded sales tax on services. The FY08 state budget was approximately $1.75 billion in the red. The income tax increase is expected to generate approximately $750 million, the expansion of the sales tax another $750 million annually (just over $600 this fiscal year due to later implementation). Also outlined in the budget provisions is a framework for cutting another $400 million from the state budget; the legislature has the next 30 days (within the confines of the continuation budget) to identify the cuts. The legislature is expected to go back to the appropriations process shortly. Thanks to all of you who made phone calls and sent letters to your legislators, urging adoption of increased revenues and no more budget cuts. The enactment of new revenue is a step in the right direction. However, we are still concerned about future budget deficits as the structural problems of our state budget have not been resolved. It is important to remember that while the parameters of the FY08 budget have been adopted and the remaining details will be fleshed out within the next month, economists are expecting that we will face another revenue shortfall before the end of the fiscal year. The expansion of the 6% sales tax includes the following services: Business service centers; Carpet and upholstery cleaning; Consulting services; Courier and messengers; Document preparation; Investigation, guard and armored cars; Investment advice (but not accounting); Janitorial; Landscaping (but not lawn mowing); Office administration; Packaging and labeling; Personal care (but not hair care); Scenic transportation; Security systems; Service contracts; Skiing (but not golf); Specialized Design; Tour operators; Transit and ground passenger transport; Travel and reservations; Warehousing and storage; Mini-warehouse and self-storage units; Personal services, which include: Astrology, fortune-telling, numerology, palm reading, psychic and phrenology; Baby shoe bronzing; Bail bonding; Balloon-o-grams and singing telegrams; Bondsperson; Check rooms; Coin operated blood pressure machines, personal machines, rental locker, and photographic machines; Pay telephones; Comfort station operations; Concierge services; Consumer buyers; Credit card notification; Dating, social introduction and social escorts; Discount buyers; Genealogical investigation; Housing sitting; Personal fitness trainers; Personal shoppers; Porters; Rest room operation services; Shoeshiners; Wedding chapel (but not churches), and wedding planning services. October 1, 2007 Government Shutdown Avoided Early this morning Governor Granholm signed a 30-day continuation budget (SB 772 and SB 773) avoiding a state shutdown. Technically, government was shutdown for a few hours early this morning but this ended when the Governor signed the continuation budget around 4:30 a.m. State employees have been instructed to report to work this morning. The Governor signed the continuation budget after the Michigan House and Senate passed the following:
September 28, 2007 Details of Government Shutdown Monday, October 1st marks the start of Michigan's new fiscal year. A state budget for FY08 has still not been adopted, and the legislature and administration continue to grapple with how to resolve a $1.75 billion deficit. If a budget is not adopted by Monday, at least a partial shutdown of state government seems imminent, as announced by the Governor last night. Today the Governor announced the following details about how a government shutdown will affect various services from each of the individual state departments. Government shutdown details include, but are not limited to: AGRICULTURE: All Department of Agriculture activities will stop during a government shutdown, except livestock vehicle inspections at the Mackinac Bridge, which are required to maintain the Upper Peninsula's Tuberculosis-free designation for cattle. During the shutdown, food safety inspections, recall effectiveness checks, gas pump inspections, animal disease monitoring, and migrant labor camp inspections will stop; agriculture export and cattle movement permits will not be issued; and horse racing will shutdown. Exports from Michigan to foreign countries would essentially cease should state government shut down. Commodities affected include dry beans, logs and lumber, nursery stock, grain, fruits, and vegetables. THE COURTS: The Michigan Supreme Court and the Court of Appeals will continue to operate with a limited staff to handle emergency matters. CIVIL RIGHTS: All Department of Civil Rights activities will stop during a government shutdown. Residents wishing to file a discrimination complaint will be able to leave a message at 1-800-482-3604 with the details of their complaint. For purposes of meeting the 180-day legal requirement, the message will constitute an official notice of the intention to file a complaint. Residents calling Civil Right's Crisis Response Hotline to report a hate crime or bias incident may also leave a message, although they are encouraged to contact local law enforcement for immediate assistance. COMMUNITY HEALTH: A number of operations within the Department of Community Health will be maintained to ensure that the health of our citizens is protected. State mental health facilities will remain open with reduced staffing, though involuntary, non-court admissions will be suspended. Critical laboratory services will operate to ensure newborn screenings are completed in a timely manner, and threats of immediate harm can be addressed. Limited Medicaid support will be available to approve emergency medical prior-authorizations and review exception requests for medications and medical procedures. The DCH also will maintain the toll-free number to register nursing home complaints of a serious nature. CORRECTIONS: Department of Corrections functions will continue as needed to protect the safety of Michigan citizens. The state's prisons, prison camps, and parole/probation monitoring will continue to operate, though at a reduced staffing level. Administrative operations outside of the prisons will shut down. EDUCATION: All Department of Education operations will shut down, except for the Michigan School for the Deaf. If Department of Education employees have not returned to work by mid-October, the state school aid payment due on October 22 will not be made. ENVIRONMENTAL QUALITY: The Department of Environmental Quality will maintain only limited staff during the shutdown period to meet U.S. Department of Homeland Security air- monitoring requirements and process critical drinking water samples to address the most immediate public health concerns. All other department functions will shut down. This means no permits (air quality, surface water discharge, wetlands, dredging, etc.) will be processed and no environmental complaints will be received or investigated. The Pollution Emergency Alerting System will be operational, but the department will have extremely limited ability to respond to emergencies reported through that system. HISTORY, ARTS & LIBRARIES: All Department of History, Arts and Libraries operations will shut down except security and emergency monitoring services at the Mackinac Island Airport and public areas. The Library of Michigan, the Michigan Historical Museum, and historic sites around Michigan will be closed. Mackinac Island paid admission sites will close and garbage and manure pick-up and road maintenance will cease. HUMAN SERVICES: Critical Department of Human Services' operations will be maintained to protect the safety of children, families, and vulnerable adults. Most local offices will remain open with a small percentage of field staff on the job to respond to child protective services and adult protective services emergencies; make emergency foster care placements; and process emergency payments for evictions, lack of utilities, lack of food, etc. Cash assistance, food assistance, child day care, adoption subsidies, and foster care payments will continue, but no new applications will be processed (except for emergencies as described above). Child support payments received from non-custodial parents will be sent to families; and the state's juvenile justice facilities will operate and will be staffed to protect the safety of residents. INFORMATION TECHNOLOGY: A limited number of Department of Information Technology personnel will be needed to maintain state operating systems and to provide technical support for those services that will continue. LABOR & ECONOMIC GROWTH: The majority of Department of Labor & Economic Growth operations will be shut down. Most of the unemployment insurance agencies will be closed, however, unemployment checks will continue to be processed and new applications can be made over the phone or via the Internet. In addition, the Michigan Career & Technical Institute in Plainwell and the Michigan Commission for the Blind Training Center in Kalamazoo will continue to provide education and training for disabled individuals. LOTTERY & GAMING: Lottery sales will end at the close of business on September 30, 2007. Players will not be able to purchase or redeem winning tickets. Minimal staff will maintain drawings due to the advance sale of tickets. State gaming inspectors will be idled as well, forcing the state-licensed casinos in Detroit to close. Note: There is current legal action surrounding the potential shutdown of the Detroit casinos that may prevent a closing. MANAGEMENT & BUDGET: A limited number of Department of Management and Budget personnel will maintain state-owned buildings. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY: The Michigan State Housing Development Authority will be closed during shutdown and all operations will stop. MILITARY & VETERANS AFFAIRS: The MVA State Finance and State Human Resource offices will be closed. The state's two veterans' homes in Grand Rapids and Marquette will continue operating with reduced staffing but will maintain the minimum staffing as required by law. The Youth Challenge Program will also remain operational but with minimum staff. Feeding and education will be provided by the Battle Creek Public Schools, an established partner of the Challenge Program. The state's 44 National Guard armories, six National Guard training sites, and National Guard administrative offices are federally funded and will remain open. NATURAL RESOURCES: All DNR operations will be shut down, except a minimal crew to maintain the state's six fish hatcheries and a small contingent of forest firefighters needed to continue containment operations at the Sleeper Lakes fire in the Upper Peninsula and to respond to other fire emergencies. Shutdown will require that all state parks, recreation areas, DNR visitor centers and state forest campgrounds be closed, including day use areas. Citizens with camping reservations at a state park or recreation area during the duration of the shutdown will be eligible for a refund. The sale of hunting and fishing licenses may be delayed if technical problems with the state server prevent processing, and gated boat access sites will not be accessible. In addition, timber will not be marked for sale or sold. The archery deer season set to open on October 1 will proceed, however, deer check stations will not be operating. SECRETARY OF STATE: Secretary of State Terri Lynn Land has indicated that branch offices will be closed during the shutdown. Online or mail transactions will not be processed, as well. STATE POLICE: The Michigan State Police will continue to protect Michigan citizens during shutdown. Though all MSP posts will be closed to the public, a limited number of troopers will be maintained to provide critical law enforcement services across the state. Administrative and specialized operations will be curtailed, resulting in the cessation of crime lab services, commercial vehicle enforcement, drug and criminal investigations, detective services, disaster assistance, and casino gaming oversight. TRANSPORTATION: All road construction, routine maintenance, and administrative operations will stop. The state's rest areas will be closed. In addition, six of the state's lift bridges, in compliance with U.S. Coast Guard regulations, will be locked in the up position, allowing only water traffic to pass. Those bridges are located in Manistee, Bay City, St Joseph, Port Huron and Detroit. The Mackinac Bridge, the International Bridge, and Blue Water Bridge will remain operational. TREASURY: Department of Treasury operations, including student loan disbursements and financial aid payments, the Michigan Education Trust, and the Michigan Education Savings Plan programs would cease during a shutdown. Revenue sharing payments to local units of government will be delayed if the shutdown continues through mid-October. A limited number of staff would be maintained to process critical payments, including cash assistance, unemployment benefits, and debt service. September 20, 2007 Less than 10 days and counting The beginning of the new state fiscal year, October 1, is right around the corner. At less than 10 days and counting, the state budget deficit remains unresolved and no budget for FY08 has been adopted. Here at the Michigan Nonprofit Association (MNA), we're concerned about the possibility of a state government shutdown and how that will impact the basic services we all rely on each and every day. We've heard loud and clear from members that the demand for your services in our state's communities continues to increase. We're very concerned about the ability of nonprofit organizations to be able to meet the increased need for services that would inevitably occur if government shuts down or if state programs and services are further cut. Please take a moment to contact your legislators and urge them to act quickly by passing a reponsible budget that places a priority on Michigan's quality of life. We know this will mean difficult decisions, and our state's current economic condition is a tough and hard situation to grapple with, but these direct services to Michigan citizens must be made a priority. You can find the phone number for your State Representative at www.house.mi.gov and the number for your State Senator at www.senate.mi.gov. You can also learn more about the state budget crisis and write an email to policymakers by visiting www.countdowntochaos.org. September 7, 2007 House and Senate Zero Out Each Other's Budget Bills The Michigan House and Senate brought the majority of each other's proposed budget bills to zero yesterday, sending the bills on to conference committee to have the specific numbers fleshed out. The House-originating budgets that were zeroed out and forwarded to conference committee include the Department of Education (HB 4346), Community Colleges (HB 4630), Department of Corrections (HB 4346), Department of Community Health (HB 4344), Higher Education (HB 4350), School Aid (HB 4359), Department of Natural Resources (HB 4354), and the Department of Environmental Quality (HB 4358). The Senate-originating budgets forwarded at a zero level include the Department of Agriculture (SB 222), Department of History, Arts and Libraries (SB 231), Department of Human Services (SB 232), Judiciary (SB 233), Department of Labor and Economic Growth (SB 234), Department of Military Affairs (SB 235), Department of State Police (SB 238), and Department of Transportation (SB 240). To view these bills, including the originally-proposed language from both the House and Senate, visit http://legislature.mi.gov and search by bill number. September 4, 2007 Several State Budget Bills Pass House Committee Several appropriations bills that originated in the Senate made their way through the House Appropriations Committee last week. The bills that passed, most with substitutes or amendments, included budgets for the Departments of Labor and Economic Growth (SB 234), State Police (SB 238), Military and Veterans Affairs (SB 235), and History, Arts and Libraries (SB 231). August 29, 2007 Survey on Nonprofits & Budget Cuts As the state legislature grapples with the ongoing fiscal crisis and additional cuts in programs and services loom near, the Michigan Nonprofit Association is again receiving numerous calls from the media regarding the financial condition of the nonprofit community. To evaluate how previous and future budget cuts are impacting the ability of nonprofits to provide needed services, we are asking you to complete a short online survey by September 10, 2007. Your responses to this survey will help provide us with a comprehensive picture of the current impact of state budget cuts on the nonprofit sector. Click here to begin the survey. August 28, 2007 State Unveils Website on Michigan Business Tax The State of Michigan has unveiled a website for the Michigan Business Tax (MBT). The site includes a 30-minute webinar on the specifics of the tax, a Frequently Asked Questions section, and other helpful resources. Visit the site at www.michigan.gov/mbt. July 12, 2007 Governor Signs Michigan Business Tax The Governor signed the Michigan Business Tax (MBT) into law today. The MBT will go into effect on January 1, 2008 and will replace the expiring state Single Business Tax. More information on the MBT is available here. July 10, 2007 SBT Replacement Details The Michigan League for Human Services has released a summary of the new Michigan Business Tax (MBT) proposal as passed by the Legislature at the end of June. The document contains details on the percentages and impact of the various components of the SBT replacement, and is available in Word and PDF. June 29, 2007 Legislature Passes Michigan Business Tax Yesterday, the Michigan Senate and House passed SB 94, the Michigan Business Tax (MBT). This is a replacement for the Single Business Tax, which was set to expire December 31, 2007. The MBT replaces the revenue that would have been lost to state funded programs and services if the Single Business Tax had not been replaced. The MBT also retains the following tax credits available to taxpayers:
* Additional tax credits were also included. It is expected that the Governor will sign SB 94. This is a step forward in addressing the revenue shortfall expected in the next fiscal year beginning October 1st. However, additional revenue still needs to be found or cuts in programs and services will still occur in the next fiscal year. June 25, 2007 Immediate Action Needed! Urge Vote on Revenue Bill Please take a moment today to call Speaker of the House Andy Dillon's office and urge him to bring a revenue bill to a vote immediately. If we are to have adequate revenues for Fiscal Year 2008, a vote must occur this week. Also, call your own Representative and ask him/her to urge House leadership to bring a revenue bill up for a vote this week in order to avoid another revenue shortfall in the fall. The Michigan legislature must act now to ensure that the state has enough revenue next fiscal year to avoid harmful cuts in critical programs and servics. The state's fiscal year begins October 1, and if a vote on sufficient revenue is delayed until later in the summer, it will not be possible to capture a full fiscal year of revenue. This will mean the creation of another revenue shortfall and lead to more cuts. For more information on the state's fiscal crisis visit http://www.mnaonline.org/statebudget.asp. The phone number for Speaker Dillon is 517-373-0857. To find the phone number for your Representative visit http://www.house.mi.gov/find_a_rep.asp. June 15, 2007 Senate and Executive Office Agree on Conceptual Replacement for Single Business Tax Senate leadership and the Governor's office have announced their agreement on a conceptual replacement for the Single Business Tax (SBT), which is set to expire on December 31 and brings in approximately $1.9 billion annually. The revenue neutral SBT replacement would consist primarily of a gross receipts and income tax combination, with substantial personal property tax relief. The precise percentages of both taxes is yet to be determined, though the gross receipts tax is expected to be less than 0.8% and the income tax no more than 5%. Language for the budget bills is currently being drafted and both legislative chambers indicated that they hope to have the bills in hand by late next week. May 25, 2007 FY07 Budget Balanced; Single Business Tax Replacement and FY08 Budget Deficit Remain The Michigan House and Senate today completed work on the FY07 State Budget. The $800 million deficit was accounted for through a combination of budget cuts, one-time shifts in payments and an early payout of tobacco settlement dollars. The FY08 State Budget remains in the red, with a budget deficit estimated at $3.5 billion. The elimination of the Single Business Tax (SBT), which goes into effect at the end of 2007, accounts for $1.9 billion of the FY08 deficit. Negotiations between the Executive Office, House and Senate regarding a replacement of the SBT are still underway; House and Senate leadership have both indicated their desire to deal with the SBT replacement prior to and separately from the FY08 state budget. May 24, 2007 House Passes Revenue Neutral Replacement of Single Business Tax The House of Representatives passed a revenue neutral replacement of the Single Business Tax (SBT) yesterday. The replacement was SB 94 H-3, the House adopted substitute for SB 94. Under SB 94 H-3, the business income tax rate is 6.95% and the net worth tax rate is 0.488%, but the bill adopts the Senate's treatment of financial institutions at a rate of 0.44%. Regulatory assets are also excluded from the net worth base. The bill as substituted would cap compensation and investment credits at 65% of a firm's liability (the compensation credit rate was changed to 0.56% from 0.8%) and research and development credits at 75% of liability. Small businesses would see relief similar to what the Senate approved, as well as the Senate's entrepreneurial credit. Auto dealers would also see an inventory credit. Insurance companies would still pay a 1.25% rate on their premiums under the bill. And a rebate would be issued to taxpayers if revenues collected were above expectations. Click here to view an analysis of SB 94. The Single Business Tax is set to expire December 31, 2007, and the loss of the SBT accounts for $1.9 billion of the state's projected $3.5 billion deficit in FY08. The state's FY07 budget deficit is currently estimated at $800 million. May 24, 2007 House Appropriations Committee Passes FY 07 Budget Supplemental Yesterday, the House Appropriations Committee passed HB 4492, a FY 07 budget supplemental. HB 4492 would increase the personal income tax from 3.9% to 4.6%, while making most of the budget cuts provided for in SB 220 (excepting Medicaid provider reimbursement cuts) and providing for some spending increases. HB 4492 is tie-barred to HB 4500, a bill to retroactively increase the personal income tax rate to 4.6% beginning January 1, 2007. HB 4500 would also increase the personal exemption from the present rate of $3,400 to $3,630 beginning in tax year 2007, and reduce the personal income tax rate back to 3.9% beginning January 1, 2012. April 27, 2007 Promising Replacement for Single Business Tax Moves Forward Yesterday the House Tax Policy Committee began its hearings on the substitute for HB 4367, the Michigan Business Tax (MBT) proposal that would replace the Single Business Tax (SBT). The SBT is scheduled to expire at the end of 2007 and without replacement will leave a $1.2 billion hole in the state budget. The proposed MBT would be a revenue neutral replacement that retains several of the credits and exemptions from the SBT. Of interest to nonprofits, the proposed MBT retains the exemptions for charitable and educational institutions exempt from federal income taxes and nonprofit cooperative housing associations. It also retains credits for charitable contributions, community foundations, homeless shelters, and historic preservation. A full analysis of the MBT proposal is available online at http://legislature.mi.gov/documents/2007-2008/billanalysis/House/pdf/2007-HLA-4367-1.pdf. April 12, 2007 Make Your Voice Heard - Take Action to Prevent Cuts in Services Statewide Call-in Day On Wednesday April 18th, please take a moment of your time to call your State Representative and State Senator and send a clear message to them that we can't afford to make more cuts in the services relied upon by Michigan residents. On April 18th, anti-tax/anti-government groups will be at the Capitol to encourage the legislature to continue cutting and to not increase revenue. It's crucial that you help to ensure that this is not the only message heard by legislators on April 18th. As you already know, the state is facing a $3 billion shortfall in revenue between this fiscal year and next year. It's time to Move Michigan Forward and for your legislators to understand that they can't cut their way of this problem without seriously impacting services in their districts. You can easily find the number for your State Representative at http://www.house.mi.gov/find_a_rep.asp and the number for your State Senator can be found at www.senate.mi.gov. The following are some general talking points for your call. If possible, share stories and data about how your community has been affected and will be affected by cuts in the state budget.
Don't Sit Back and Wait for the Cuts. Make Your Voice Heard to Protect Vital Services - Your Legislators Need to Hear from You Now ! April 9, 2007 Extended Deadline! Sign On Now to say "No More Cuts" You have an opportunity to play an important role in the current state budget discussions. MNA is collecting signatures for a letter that will be circulated to elected officials and the media, urging no further budget reductions and the consideration of generating more revenue through a close examination of the state's fee and tax structure. The text of the letter is available here. To add your organization's signature to this Sign On Letter, email Tiffany Aurora at taurora@mnaonline.org with your name, title, and name of your organization. The deadline for signatures has been extended to Monday, April 16. Government and nonprofits have traditionally been partners in meeting the needs of Michigan families. They have worked together to sustain and improve the quality of life in our communities. But with a combined state budget shortfall of nearly $3 billion during this fiscal year and next, we're at a crossroads where one wrong turn could have devastating results. Important programs and services that are funded or partially funded by the state have been receiving cuts for years. We've reached a point where continued cuts are no longer an option unless all Michigan residents are willing to accept decreases in the level and quality of education, health care, culture, environment, natural resources, social service programs, and the many other services currently being provided to them. Add your organization's signature to this Sign On Letter today! March 30, 2007 The House Appropriations Committee adopted the Governor's Executive Order (E.O.) on Thursday, March 29. The E.O. makes approximately $344 million in cuts and one-time payment shifts. The estimated budget shortfall for the state's current fiscal year, ending September 30, 2007, is between $800 million and $900 million. Budget discussions will continue into the coming months to address the $450 - $550 million deficit that remains after the implementation of the E.O., as well as the estimated $2 billion budget shortfall for FY 08. March 30, 2007 Due to the ongoing state fiscal crisis, Governor Granholm has issued a Directive enacting a moratorium on state grant expenditures. This Directive is effective beginning on April 4, 2007 and remains in effect through September 30, 2007. The following is the language included in Governor's Directive 2007-11: A. For the remainder of the fiscal year ending September 30, 2007, a moratorium is imposed on the expenditure of funds in the form of grants to persons or entities. Grant expenditures shall be deferred and limited only to the most essential requirements. A grant expenditure meets essential requirements only if a department or agency can demonstrate that one or more of the following applies:
B. In complying with this Directive, department directors and heads of autonomous agencies should regularly review expenditures and implement measures to restrict grant expenditures unless authorized by this Directive. C. The restrictions established under this Directive apply both to new grants, grants previously authorized but not fully expended, and to the renewal, extension, or reauthorization of existing grants. March 23, 2007 The Governor issued her latest Executive Order (E.O.) yesterday. The E.O. included $344 million in cuts, a combination of about $180 million in hard cuts and $164 million in delayed payments and adjustments to retirement. While the House declined to take immediate action on the Executive Order, the Senate passed the E.O. and two of their own budget bills, then voted down the proposed 2% tax on services. SB 220 and SB 221 included cuts of $312.7 million, resulting in nearly $500 million in hard cuts between the two Senate bills and the Executive Order. The estimated deficit of this fiscal year's budget is nearly $900 million. Included in SB 221 is a hard cut of $57.4 million to the per pupil foundation allowance in the School Aid Fund, breaking down to a cut of $34 per student. The Senate bills also cut revenue sharing by $39.9 million. The Department of Community Health and Department of Human Services saw large cuts in the Senate bills, while several other departments also received cuts. $2.5 million was added to the budget for the State Police in order to prevent layoffs of state troopers. The Executive Order, SB 220 and SB 221 now go the House Appropriations committee. MNA is currently collecting signatures for a letter that will be circulated to elected officials and the media, urging no further budget reductions and the consideration of generating more revenue through a close examination of the state's fee and tax structure. The text of the letter is available on the MNA website. To add your organization's signature, complete this form and fax it to 517-492-2410. The deadline for signatures is Thursday, April 5, 2007. March 2, 2007 The Michigan Nonprofit Association held two conference calls this week to provide an opportunity for nonprofit leaders to learn more about the state's fiscal crisis. The call included a presentation by Craig Thiel from Citizens Research Council of Michigan. March 1, 2007 The legislature has introduced several bills based on Governor Granholm's tax proposal outlined in her Executive Budget. The House bills have been referred to the committee on tax policy and the Senate bills have been referred to the finance committee. House: HB 4367, HB 4368, HB 4369, HB 4370, HB 4371, HB 4372, HB 4373, HB 4374, HB 4375, HB 4376, HB 4377, HB 4378, HB 4379, HB 4380, HB 4381, HB 4382, HB 4383, HB 4384, HB 4385, HB 4386, HB 4387, HB 4388 and HB 4389. Senate: SB 306, SB 307, SB 308, SB 309, SB 310, SB 311, SB 312, SB 313, SB 314, SB 315, SB 316, SB 317, SB 318, SB 319, SB 320, SB 321, SB 322, SB 323, SB 324, SB 325, SB 326, SB 327 and SB 331. February 26, 2007 The Treasury Department has released a document titled "Taxation of Services Under the Two-Penny Plan." The publication outlines services that will be taxed and those that will be exempt under the Governor's proposed two percent tax on certain services. February 23, 2007 The Michigan League for Human Services has published an analysis of the Governor's budget. "Governor Granholm Issues FY 2008 Executive Budget Proposal: Program Cuts, Tax Increases, and Operational Reforms Recommended." February 20, 2007 The Michigan League for Human Services has issued a position paper on the state's fiscal crisis. "Michigan's Ongoing Fiscal Crisis: Falling Tax Rates Drive Ballooning Deficits." February 8, 2007 Governor Announces Proposed State Budget for Fiscal Year 2008 The Fiscal Year 2008 Executive Budget was released today and includes a combination of spending cuts and increased revenue. Anticipating a $2 billion gap between revenue and expenses, the 2008 budget includes $310 million in spending reductions in the following areas:
The Governor is also proposing a tax restructuring proposal which includes, but is not limited to:
The proposal also contains a 2.5% increase for universities and community colleges; a 2.5% increase in per pupil funding for K-12 schools, $200 million to expand preschool opportunities, funding to train dislocated workers, and a nurses corp. The Executive Budget will now be turned into 17 bills for action by the legislature. To address this year’s almost $1 billion revenue shortfall, the Governor has reduced General Fund spending by $109 million, adjusted the actuarial valuation of the state’s retirement systems, utilized some restricted fund balances, delayed a portion of the August higher education payment until 2008, and filled the rest of the gap with the proposed tax restructuring proposal. The revenue shortfall in the School Aid Fund is mainly addressed by adjusting the actuarial valuation of the Public School Employees Retirement System, action on the proposed tax restructuring proposal and reducing expenditures for categorical programs. 10 Facts Every Michigan Citizen Needs to Know about Michigan's Fiscal Crisis Download this brochure (PDF or text-only Word document) for a list of the 10 Facts Every Michigan Citizen Needs To Know about Michigan's Fiscal Crisis. MNA's Position Statement on the State Budget The Michigan Nonprofit Association urges swift action to ensure sufficient state and federal revenue bases to avoid further budget reductions and to reinvest in arts and culture, pre-k - 12 education, private and public higher education, environment and natural resources, health and human services, and to support reasonable growth over time. Revenue options include, but are not limited to:
Resources to help Move Michigan Forward The Move Michigan Forward website includes background information on the state budget crisis, examples of resolutions adopted by organizations, sample letters to the editor, talking points and more. Sign On Letter urging No More Cuts April 25, 2007 The Michigan Nonprofit Association and over 160 other organizational leaders from across Michigan signed on to a letter to the Michigan Legislature, urging no further budget reductions and the consideration of generating more revenue through a close examination of the state's fee and tax structure. Click here to download the letter. To add your organization's signature to this letter, email your name, title and organization to taurora@mnaonline.org. General Information on the State Budget About the State Budget Citizens Research Council Publications on Michigan's Budget Crisis Michigan League for Human Services |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home - Faq - Contact Us - Sitemap - For the Media - Privacy Statement - Disclaimer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Copyright © 2002-2007, Michigan Nonprofit Association | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
