Articles Of Interest 1-11-08
300 Days until Election Day
MORNING UPDATE:
The Republican Presidential debate in South Carolina went over well without any new surprises. Our candidates addressed the issues of the day, drew several contrasts and showed why Republicans are in great shape going into the 2008 presidential elections.
In advance of expected calls at today's state of Michigan’s revenue estimating conference to spend "surplus" funds on more band-aid fixes to Michigan's budget, House Republicans today called for the surplus to be returned to taxpayers instead and for House leadership to make reforming government spending the priority of 2008. Oh, ohh…now what Governor???
Republican candidates have started stumping in Michigan…rallies, receptions, fundraisers and scores of radio and TV interviews. What a great opportunity to meet our presidential candidates in person.
We are in the process of compiling and updating a complete list of “party events” and “candidate appearances” around the state. If you have any additional information, please send it to our offices ASAP and we will update the list. The list is being sent to state and national media outlets regularly and updated on our web site and blog daily. To see the latest list go to:
http://migop.blogs.com/blog/2008/01/update-mi-gop-p.html
Take advantage of the many events being planned around the state and come hear and see the candidates first hand. This is YOUR chance to make a difference and be part of electing the next President of the United States.
Don’t forget to mark your calendars for the February 7th county conventions and the February 15/16 state convention in Lansing. If you have any questions about the state convention, please contact DAWN WADE, Events Coordinator (dwade@migop.org or 517-487-5413).
THE REST OF THE STORY:
No further commentary today.
Saul Anuzis
STATE STORIES
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100505/1022
Michigan
Thursday, January 10, 2008
Gordon Trowbridge / Detroit Washington
Michigan Michigan Michigan South Carolina Michigan Oakland County Michigan South Carolina
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080111/POLITICS01/801110359
Was it worth the price?
Parties' leaders say moving up primary vital despite disputes
January 11, 2008
Gordon Trowbridge / Detroit Washington
There, in the lead-story position on the front page of the New York Times, was what Michigan Michigan Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100391/1022/POLITICS
Romney, McCain woo Michigan
Romney drops ads in Fla.
Thursday, January 10, 2008
Gordon Trowbridge / Detroit Washington
Stung by John McCain's victory in New Hampshire Michigan
McCain and Romney hit the trail in Grand Rapids Boston
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/NEWS06/801100362/1008
Romney, McCain start to cozy up to Michiganders
Huckabee scheduled to be in Detroit
January 10, 2008
BY KATHLEEN GRAY and DAWSON BELL
GRAND RAPIDS Arizona
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/NEWS06/80110064/1008/NEWS06
Refund budget surplus to taxpayers, Republicans say
January 10, 2008
BY CHRIS CHRISTOFF
LANSING – House Republicans are calling on the state to refund to taxpayers a $353-million budget surplus from the 2006-07 fiscal year.House Minority Leader Craig DeRoche, R-Novi, said using the money to shore up the current year budget would only perpetuate a state deficit and said the budget should be cut instead. DeRoche accused Gov. Jennifer Granholm’s administration of hiding or miscalculating state spending in order to make the case for a tax increase last fall. Granholm and the Legislature raised the income tax from 3.9% to 4.35%, and enacted a new sales tax on services that was quickly repealed and replaced with a larger business tax.
http://www.wkar.org/news/page.php?fill=story&storyid=3
Republicans want to refund surplus to taxpayers
Jan. 10th 2008
WKAR
State House Republicans say they will introduce legislation that would return an expected $350 million surplus to the taxpayers.The money is expected to help cover a potential deficit in the current budget year.But House Minority Leader Craig DeRoche says that will only make the state’s structural deficit worse because that money won’t be available next year.
http://embeds.blogs.foxnews.com/2008/01/10/rudy-pulls-michigan-staff/
Rudy pulls Michigan
January 10, 2008
by Mosheh Oinounou
Rudy Giuliani has pulled all of its staffers out of Michigan Florida Wolverine State Michigan
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/NEWS15/801110416
Romney pledges to fight for Michigan
McCain promises worker retraining
January 10, 2008
By TODD SPANGLER
Former Massachusetts Gov. Mitt Romney staked a strongly worded claim as the Republican presidential candidate best suited to solve Michigan's deep-seated economic woes at a debate Thursday night, saying he would fight "for every single job" in the state.
"We're going to have to do the hard work of rebuilding our economy, strengthening it," said Romney, who blasted his main rival here -- Arizona Sen. John McCain -- for suggesting that some jobs lost in Michigan as Detroit's automakers have downsized are gone forever.
http://www.mlive.com/news/chronicle/index.ssf?/base/news-13/119997814637070.xml&coll=8
Republicans expound on Michigan
Thursday, January 10, 2008
By Peter Luke/Chronicle Lansing
WATERFORD Michigan New Hampshire Arizona Michigan Massachusetts
http://www.mlive.com/news/flintjournal/index.ssf?/base/news-3/119997301699460.xml&coll=5
Primary time
GOP race boosts state, as would Clinton
Thursday, January 10, 2008
Flint
Michigan New Hampshire Great Lakes State
With wins there by John McCain and Hillary Rodham Clinton, Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100371/1022
McCain vows help for state will be 'highest priority'
Thursday, January 10, 2008
Gordon Trowbridge and Gary Heinlein / The Detroit
WATERFORD New Hampshire
But there the Arizona Oakland County Michigan
http://www.mlive.com/news/grpress/index.ssf?/base/news-0/1199976397252540.xml&coll=6
McCain says he's ready to seize control
Thursday, January 10, 2008
By Ted Roelofs/The Grand Rapids
KENTWOOD Michigan Michigan high point Michigan Comstock Park Gerald R. Ford International Airport New Hampshire
Analysis: Romney focuses on Michigan
January 10, 2008
By GLEN JOHNSON
MYRTLE BEACH S.C. Iowa New Hampshire Michigan South Carolina Florida Michigan
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/OPINION02/801100369/1068/OPINION
Romney would make best choice for Great Lakes
January 10, 2008
By JOHN NEVIN
Traveling up I-75 through northern Michigan Mackinac Bridge DNR Ralph A. MacMullan Conference Center Great Lakes Michigan Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100374/1022
Friendly reception marks Romney's return to 'deep roots'
Thursday, January 10, 2008
Gary Heinlein / Detroit Lansing
GRAND RAPIDS -- Mitt Romney, who desperately needs a boost from Michigan in next week's Republican primary, told voters in his native state Wednesday that he'll return the favor if he gets to the White House. The son of an ex-Michigan governor launched his stretch run in Michigan Grand Rapids Grand Valley State University Michigan New Hampshire Michigan Michigan
http://www.mlive.com/news/grpress/index.ssf?/base/news-0/1199976432252540.xml&coll=6
Beware of liberal leaders, Romney says
Thursday, January 10, 2008
By Dave MurrayThe Grand Rapids Press
GRAND RAPIDS Michigan Massachusetts Michigan Michigan Michigan Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS/801100466
Huckabee has hope in Michigan
Thursday, January 10, 2008
Gregg Krupa / The Detroit
Mike Huckabee expressed cautious optimism today about his fortunes in Tuesday's Michigan Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS/801100460/1374/POLITICS01
Democratic state lawmaker praises Huckabee
Thursday, January 10, 2008
Gregg Krupa / The Detroit
A Democratic state representative from Detroit Michigan
http://www.humanevents.com/article.php?id=24382
Key Huckabee Backer in Michigan
January 10, 2008
by John Gizzi
Both the Byzantine nature of the Michigan Detroit Arkansas
Voting expert: Republicans are crossing into Democratic primary
Jan 10, 6:28 PM EST
By DAVID EGGERT
LANSING Mich. East Lansing
Michigan
January10, 2008
By Kathleen Gray, Detroit
DETROIT — A group of several hundred Michigan voters plan to knock on doors, make calls and hold rallies for a rather unconventional candidate in next Tuesday's primary — uncommitted.The only way that backers of Illinois Sen. Barack Obama, former North Carolina Michigan
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100373/1022
Dems push 'uncommitted' option
Party leaders want Obama and Edwards backers to take a stand on the primary ballot.
Thursday, January 10, 2008
Mark Hornbeck / Detroit Lansing
LANSING Michigan
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/NEWS06/801100363/1008
Voters urged to turn out despite ballot uproar
January 10, 2008
By CHRIS CHRISTOFF and KATHLEEN GRAY
As the nation's eyes turn to Michigan Clinton Michigan
http://www.freep.com/apps/pbcs.dll/article?AID=/20080110/NEWS15/80110086/1008/NEWS06
Kucinich treated like a rock star in Troy
January 10, 2008
BY KATHLEEN GRAY
With presidential candidates largely absent from Michigan Iowa New Hampshire Troy Iraq
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/POLITICS01/801100381/1022
TV news anchors to cover Mich.
Thursday, January 10, 2008
Mekeisha Madden Toby / Detroit
The TV news networks will be in Michigan Michigan
On the night of the primary, ABC anchorman Charles Gibson will deliver special reports in as primary results become known from New York
http://blog.mlive.com/flintjournal/newsnow/2008/01/flint_mayor_taken_to_the_hospi.html
Flint
January 10, 2008
by Kristyn Peterson | The Flint
FLINT McLaren Regional Medical Center
DNR delays decision on permits for Upper Peninsula
Jan 10, 2008
By JOHN FLESHER
TRAVERSE CITY, Mich. (AP) -- A proposed nickel and copper mine in Michigan's Upper Peninsula hit at least a temporary snag Thursday when the state Department of Natural Resources postponed a ruling on the company's plan. Director Rebecca Humphries was scheduled to announce whether the DNR would let Kennecott Minerals Co. build and operate the mine in northwestern Marquette County
NATIONAL STORIES
Republicans debate in South Carolina
Jan 10, 2008
By LIZ SIDOTI
MYRTLE BEACH, S.C. (AP) -- Republican presidential rivals backed a blend of tax and spending cuts Thursday night to head off an election-year recession they generally agreed is not inevitable." We should reduce taxes on middle-income Americans immediately," former Massachusetts Gov. Mitt Romney said in a debate in the run-up to presidential primaries in Michigan South Carolina
http://apnews.myway.com/article/20080111/D8U3EB4O0.html
GOP Rivals Back Tax, Spending Cuts in SC
Jan 10, 2008
By LIZ SIDOTI
MYRTLE BEACH, S.C. (AP) - Republican presidential rivals backed a blend of tax and spending cuts Thursday night to head off an election-year recession they generally agreed is avoidable. "We should reduce taxes on middle-income Americans immediately," former Massachusetts Gov. Mitt Romney said in a debate in the run-up to presidential primaries in Michigan South Carolina
http://blog.washingtonpost.com/thefix/?hpid=topnews
Republicans Debate: The Conclusion
January 10, 2008
By Chris Cillizza
The six Republican presidential candidates disagreed repeatedly but politely in a debate tonight in Myrtle Beach S.C. Ariz. Michigan South Carolina
http://online.wsj.com/article/SB119992665423979631.html?mod=opinion_main_commentaries
The Surge Worked
January 10, 2008
By JOHN MCCAIN and JOE LIEBERMAN
It was exactly one year ago tonight, in a televised address to the nation, that President George W. Bush announced his fateful decision to change course in Iraq, and to send five additional U.S. combat brigades there as part of a new counterinsurgency strategy and under the command of a new general, David Petraeus. At the time of its announcement, the so-called surge was met with deep skepticism by many Americans -- and understandably so.After years of mismanagement of the war, many people had grave doubts about whether success in Iraq Iraq
McCain seeks second-shot win in S.C.
Jan 10, 2008
By LIZ SIDOTI
CHARLESTON, S.C. (AP) -- John McCain is hoping the South Carolina that votes next week will be a different South Carolina than the one that spoiled his presidential hopes eight years ago. He has reason to hope: An influx of newcomers is just as Republican - but not necessarily as conservative - as native South Carolinians Arizona New Hampshire
http://www.guardian.co.uk/comment/story/0,,2238148,00.html
Clinton
A dramatic 24 hours gives Hillary a great boost, but would she beat the Republicans' resurgent veteran?
Thursday January 10, 2008
By Jonathan Freedland
He was talking about moviemaking, but William Goldman's adage now officially holds true for American politics too: no-one knows anything. It's not just the pollsters and pundits who believed Hillary Clinton was on her way to defeat in New Hampshire New Hampshire
Analysis: McCain and Huckabee now rivals
Jan 10, 2008
By JIM KUHNHENN
MYRTLE BEACH , S.C. Michigan South Carolina Iowa New Hampshire
Huckabee aims for evangelicals in SC a
Jan 10, 2008
By ERIC GORSKI
Propelled in Iowa South Carolina South Carolina
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aQEf60fq86h4
Rudy Giuliani Proposes `Biggest Tax Cut' in History
January 10, 2008
By Christopher Stern and Alison Fitzgerald
Jan. 10 (Bloomberg) -- Republican presidential candidate Rudy Giuliani proposed a tax overhaul plan that would reduce capital gains and corporate tax rates and allow many Americans to file a one-page return. The plan would reduce the corporate tax rate to 25 percent and the capital-gains tax to 10 percent. The current corporate tax rate is 35 percent, and the capital-gains rate is 15 percent, set to rise to 20 percent in 2010 as President George W. Bush's tax cuts expire. If all of his proposals were enacted, ``It would be the biggest tax cut in American history,'' Giuliani said in an interview on Bloomberg Television.
http://www.theledger.com/article/20080110/NEWS/801100509/1134
Thompson Hopes for Big Surge in the South
January 10, 2008
By Joe Follick
TALLAHASSEE | After a miserable showing in Tuesday's New Hampshire primary, GOP candidate Fred Thompson is clearly banking on a surge in the South to revive what was once the most spirited of conservative campaigns. About a dozen state lawmakers joined U.S. Rep. Adam Putnam, R-Lakeland, in the Capital Press Center Tallahassee New Hampshire
http://www.reuters.com/article/newsOne/idUSN1024530420080111
Clinton
Thu Jan 10, 2008
By Jeff Mason
LAS VEGAS U.S. Clinton New Hampshire
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080110/NATION/237194502/1001
Hillary win revives race, stirs donors
January 10, 2008
By Christina Bellantoni
Sen. Hillary Rodham Clinton cashed in on her come-from-behind New Hampshire Iowa
http://www.nytimes.com/2008/01/10/us/politics/10clinton.html?_r=1&ref=todayspaper&oref=slogin
Clinton’s Message, and Moment, Won the Day
January 10, 2008
By PATRICK HEALY
At first, the moment seemed like a disaster: The televised images of the teary-eyed exchange Hillary Rodham Clinton had with a New Hampshire
http://www.realclearpolitics.com/articles/2008/01/youre_likable_enough_costs_oba.html
'You're Likable Enough' Costs Obama
January 10, 2008
By Richard Cohen
Rick Lazio must have known what was coming. As Hillary Clinton's Senate opponent in 2000, he alarmingly strode across the stage during a debate and demanded that she sign a pledge to ban the use of soft money in their campaign. With every step, he lost the votes of women.Now something similar has happened. I am not referring to the most famous cry since Evita's (Don't Cry for Me, New Hampshire Clinton New Hampshire Clinton
Former Dem nominee Kerry endorses Obama
Jan 10, 2008
By NEDRA PICKLER and ANDREW MIGA
CHARLESTON , S.C. South Carolina Clinton New Hampshire United States
Calls Grow for Bloomberg to Make Up His Mind
Published: January 11, 2008
By DIANE CARDWELL and RAY RIVERA
Nearly every day a tiny new development trickles out from the stealth presidential campaign of Michael R. Bloomberg, the billionaire mayor of New York
He has talked with Chuck Hagel and Sam Nunn, potential running mates. He has delivered a tart critique of the presidential field. He is conducting intricate polling to test his appeal in all 50 states. Mr. Bloomberg’s dalliance with the idea of running for president has stretched on and on, with his enthusiastic approval despite the public denials. But even before actually entering the contest, Mr. Bloomberg may have already risked losing something: people’s patience.
http://online.wsj.com/article/SB119992566081579523.html?mod=opinion_main_commentaries
Iran
January 10, 2008
By WALTER RUSSELL MEAD
"It was a dangerous gesture," said President George W. Bush about Sunday's incident that involved five vessels, apparently under orders from the Iranian Revolutionary Guard, harassing U.S. U.S. Mediterranean
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080110/NATION/169957556/1001
Bush 'hopeful' for Mideast
January 10, 2008
By Jon Ward
RAMALLAH, West Bank — President Bush today concluded his meetings with Israeli and Palestinian leaders and said that he had done his best to clarify the concessions needed by both sides for a peace agreement, while a top adviser said the president will likely return to Israel this year. "Now is the time to make difficult choices," Mr. Bush said, after returning to Jerusalem West Bank Palestine
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080110/NATION/801828374/1001
Bush says Palestine
January 10, 2008
By Jon Ward
RAMALLAH – President Bush today arrived in the unofficial capital of the Palestinian Authority, where he met with Palestinian leader Mahmoud Abbas to discuss the future of the Middle East
http://www.reuters.com/article/newsOne/idUSL1013422320080111
Afghanistan U.S.
Fri Jan 11, 2008
By Hamid Shalizi
KABUL (Reuters) - Afghanistan welcomed on Thursday U.S. plans to send an extra 3,000 troops to fight the Taliban insurgency, but Washington's move highlights divisions between Western allies over how much to commit to the country.In Brussels, NATO Secretary-General Jaap de Hoop Scheffer welcomed the U.S. plans but stressed that a number of European allies had in recent months also added forces there. The Pentagon said on Wednesday U.S. Defense Secretary Robert Gates was considering sending an additional 3,000 Marines to thwart any Taliban spring offensive, bringing to around 30,000 the number of American troops in Afghanistan.
Mirs Capitol Capsule
To Subscribe Contact John Reurink (517) 487-2186
House GOP: 'Give Back The Surplus'
House Minority Leader Craig DeROCHE (R-Novi) said today the state should give taxpayers their money back when a year ends with a surplus, like it did in 2007 when the $353 million in the bank would have equaled $80 a taxpayer.
At a Capitol press conference this afternoon, DeRoche said the surplus was nothing to be proud of
"The Governor said we were out of money and needed to raise taxes," DeRoche said. "Now we learn there was a $350 million surplus … The state should be giving that money back to the taxpayers rather than using it to artificially prop up the budget."
"The budget was over-funded last year and the people were over-taxed," DeRoche said.
Greg BIRD, spokesman for House Speaker Andy DILLON (D-Redford Twp.), said it would be a mistake to send the $350 million back to the taxpayers at this point.
"At this time that just wouldn't make sense," Bird said. "We need to get the best information possible on what our fiscal situation is. We shouldn't give that money away. We may soon be facing a shortfall. At this time it makes more fiscal sense to hold onto the money until we get more information about what the fiscal picture is."
In conjunction with the news conference the House Republicans put out a news release titled "House GOP: `Who's in your wallet?" and subtitled: "Republicans move to return surplus, force spending reforms."
Politically, today's news conference may be significant if it signals the pose House Republicans plan on striking for this election year, which is:
- Last year's tax hikes, (at least the level of the hikes) weren't really necessary
- Cuts and reforms are what the state really needed
- Lawmakers were duped by Gov. Jennifer GRANHOLM into believing the budget crisis was worse than it really was.
From an arm's-length viewpoint the posture is re-enforced by the fact that the 2008 budget was an $800 million increase over the previous year's budget — and, of course, the year-end surplus will be handy for the Republicans to refer to, as well.
The reality is the surplus will basically disappear after Friday's Consensus Revenue Estimating Conference and the numbers show the state will be bring in less money than expected this year and next (See "'07 Surplus To Disappear Friday," 1/9/07).
Also, nearly every member of the House Republicans voted for the budgets with the increased spending amounts this past fall (See "We're Here To Spend," 10/30/07).
Nonetheless, the GOP has the minority party advantage of a simpler message as long as they stay on message … which is something they struggled with as a majority party in recent years.
Today, reporters asked the Republicans how the surplus could be returned and how much money each taxpayer would get.
"One way would be to lower the new income tax rate from 4.3 percent to 4.2 percent," Assistant Minority Leader Rep. Kevin ELSENHEIMER (R-Kewadin) suggested.
Elsenheimer added that if the $350 million were returned to the taxpayers it would come out to about $80 per person.
"Hey, that's two tanks of gas," Elsenheimer pointed out.
In addition to calling for the surplus to be returned to the taxpayers, DeRoche said the House Republicans are calling for (at least talking about) a Constitutional amendment to require the state to return surpluses to the taxpayers and making $670 million in cuts and reforms to the current-year budget.
Bird's take on the constitutional amendment idea was worth discussing but there would be a lot of details to look at.
"We're open to discussing that. But at first glance I think there would be a problem with it in that to simply give back any surplus would prevent the state from any funds in reserve," Bird said.
Regarding the $670 million in cuts, MIRS suggested to DeRoche that the Democrats could pan that proposal by bringing up the House Republicans' rejection of the deep budget cuts Senate Republicans sent to the House last fall.
"If that's the case, you can tell Speaker Dillon that was about a budget that was settled back in November. This is about moving forward," DeRoche said. "If he says that — it's a game. It's just a petty game that gets played."
Meanwhile, Bird said that while the Democrats would be interested in pursuing potential reforms and cuts, it is a little late in the day for the House Republicans to be clamoring for budget cuts.
"They actually had a chance to vote on ever greater cuts than that ($670 million)," Bird said. "Those Senate cuts were brought up and they were rejected unanimously."
DeRoche claimed there is a supplemental budget bill that could immediately be brought up for a vote that would make the $670 million in cuts and reforms, but Bird said he's not aware of such a bill.
"The closest bill to that we could find was HB 5845, which would have made $301 in cuts - and most of those weren't real," Bird said.
REPORT NO. 7 VOLUME 47
THURSDAY, JANUARY 10, 2008
To Subscribe Contact Larry Lee (517) 487-5500
HOUSE G.O.P.: GIVE SURPLUS TO TAXPAYERS; FIX SHORTFALLS WITH CUTS
Instead of using the $353 million budget surplus from the 2006-07 fiscal year to cover anticipated shortfalls in the current fiscal year, House Republicans said the state should refund that money to the taxpayers and the Legislature should take up a proposed constitutional amendment requiring surpluses in the future to be refunded automatically.
House Minority Leader Craig DeRoche (R-Novi) and Rep. Kevin Elsenheimer (R-Bellaire) said if leaders go in the direction of using the surplus to balance out the budget all they are doing is ignoring the structural deficit that is created next year when no extra money is available to cover government services.
Instead, the government needs to pare spending down and Republicans have a supplemental substitute prepared that would do that by some $670 million, they said. Their proposal would do the following:
• Cut legislator pay by 5 percent - $600,000
• Use additional revenue from the Michigan Business Tax transition - $219 million
• Reexamine state employee benefits - $100 million
• Cut the Department of Information Technology - $10 million
• Competitively bid Corrections services - $50 million
• Charge prisoners more for goods purchased in prison - $3 million
• Streamline the Department of Community Health - $92 million
• Reform the Department of Human Services - $109 million
• Stop new appropriations to 21st Century Jobs program - $75 million
• Eliminate the Community Service Commission Grant to train volunteers - $3 million
• Remove the increase to the Treasury Department to implement the new taxes - $9 million
• Continue to reduce public transit funding - $5 million
Also, amending the Constitution to automatically refund taxpayers when a surplus occurs (Republicans haven’t determined what monetary threshold that would be) would put in place the kind of checks and balances the Headlee amendment envisioned, Mr. DeRoche said.
Refunds could occur this year, Mr. Elsenheimer said, and if all $353 million was given back that could amount to about $80 per taxpayer, or a tank or two of gas. How the refunds would go out is still being decided, Mr. Elsenheimer said, but a rollback of the income tax rate to 4.2 percent from 4.35 percent equals about $170 million.
“It’s money we took away from families and businesses that couldn’t afford it,” Mr. DeRoche said of the surplus.
Both Republicans argued the state shouldn’t put any money from the surplus in the Budget Stabilization Fund either because taxpayers were already struggling before their taxes were raised and they deserve some money back.
The Legislature was told repeatedly by the Granholm administration during the budget process that no surplus of consequence would result at the end of the 2006-07 fiscal year, Mr. DeRoche said, and decisions were based on that information.
But Leslee Fritz, spokesperson for the State Budget Office defended the administration by saying that during target setting lawmakers were told departments would lapse some funds, but the amount was indeterminate until books were actually closed just recently.
She said it would have been poor financial management to have the budget assume a lapse when no one knew exactly how much it would be.
And Greg Bird, spokesperson for House Speaker Andy Dillon (D-Redford Twp.), said, “It’s doesn’t make the best fiscal sense to give the money away when we know we are facing financial difficulties just around the corner.”
While they believe more cuts and reforms need to be looked at to balance out any budget shortfalls this year and next, Mr. Bird cautioned to “leave the powder dry” until the state’s fiscal picture is clear after the Revenue Estimating Conference. He also said cutting programs for vulnerable citizens was something Democrats fought against during the last budget battle and they would do the same.
Mr. Bird said the devil will be in the details of any constitutional amendment, arguing that tying the hands of any Legislature isn’t a good thing when different decisions are made during different times.