MacGregor votes on sound, balanced budget four months ahead of schedule
Just five months into the 96th Legislature, Michigan legislators delivered a properly balanced budget to Gov. Snyder based on real numbers.
State Rep. Peter MacGregor voted in favor of the historic budget, which includes the $1.1 billion in spending reductions needed to get Michigan on solid financial footing.
“We have done one of the things we came here to do: balance a sound budget with efficiencies, outcomes, best practices, debt reduction with no gimmicks—four months ahead of schedule,” said MacGregor, R-Rockford. “For the first time in decades, the budget has been determined in enough time for those relying on funding to plan ahead for the upcoming year, with our schools only having to see a 1.4% reduction.”
The fiscal year 2012 budget minimizes school funding reductions, encourages local governments and schools districts to become more efficient, and gives municipalities, schools and universities ample time to balance their own budgets.
House Bills 4325 and 4526, which encompass the state budget, was approved by the state House and will now be sent to the governor for his consideration. Highlights include:
• The K-12 budget reduction is effectively reduced to less than $100 per pupil this year for schools that implement best practices. It represents a 1.4 percent decrease in funding;
• A total of $256 million will be put into a rainy day fund to allow the state to plan for the years ahead with an assurance of further stability;
• An additional $30 million on top of the already-agreed amount—$15 million to counties and $15 million to cities, townships and villages—will help struggling local governments meet their financial obligations; and
• The budget moves Michigan closer to regaining AAA bond rating status. Getting back to AAA status means the state will save millions of dollars on interest in borrowing costs.