Granholm urges four-part solution to budget crisis

In her weekly radio address, Governor Jennifer M. Granholm noted recent progress on the state’s 2007 budget, saying lawmakers must adopt a four-part, comprehensive solution to the ongoing budget crisis, combining spending cuts, government reforms, new revenues, and a new business tax structure.

“This step forward is a result of bipartisan cooperation which will be key to any complete solution to the budgetary and economic challenges Michigan is facing,” Granholm said.  “We need to move forward with the kind of comprehensive approach I proposed months ago.”

Granholm’s four-part solution includes hundreds of millions of dollars in spending cuts this year, closing loopholes and finding savings in public employee benefits, and reducing prison costs.  New revenues and replacing the outdated Single Business Tax with a new, highly competitive business tax structure are critical to a solution to the 2008 budget shortfall.  Michigan’s economic revitalization plan can be built only on the solid financial footing of a balanced budget that protects education, health care, and public safety from deep cuts.

“We must transform into a 21st century economy and prepare our people to work in health care, research and development, alternative energy and advanced manufacturing,” Granholm said.  “That means investing in education, investing in our people, and investing in diversifying our economy.”