Since it is your state, and therefore your tax dollars on the table, I have been having community discussion about the budget around the state – from Detroit to Marquette. At these forums, we have used interactive technology to record votes from the audience about what their priorities are and we’ve engaged in discussions about what should be cut and what should be preserved.

These discussions will help me move forward with an executive order that reflects the priorities of the taxpayers as I propose cuts that will balance our budget. Unlike the federal government, the State of Michigan cannot run up a deficit. We are required to balance the budget by making cuts or finding new revenue sources.

Many have suggested that we pause the rollback in the state income tax rate that is slated to take effect in January. Pausing the rollback will give us $115 million in revenues that we can put toward our deficit. While it might soften the blow, it certainly would not resolve the problem. Our budget is plagued with a structural deficit. That means while the state was busy cutting taxes in the 1990s when the economy was good, it never decreased state spending. The state has been overspending by about $800 million from 2000 to 2003, using the once-fat rainy day fund to patch the holes in the budget. Now, the rainy day fund is tapped out, and we have no other choice than to cut spending.

These budget cuts will impact everyone in the state. Certain state services that many people have relied on and are used to will no longer be available. Lines at state offices will probably get a little longer.

Many have questioned why I have gone to the people with these budget discussions. I strongly feel the immense scope and range of budget decisions demand direct input from citizens. We cannot find the right solution for Michigan behind closed doors in Lansing. Our goal for the forums was two-fold – one, to prepare citizens for the seriousness of the cuts we are faced with; two, to ask the citizens what they are willing to pay for and what they are willing to cut.

This budget is about you and will affect you, your family and your way of life. Last July, we made tough decisions to cut more than a billion dollars from our state budget. I’m prepared to make those though calls again today, but wanted to give you the opportunity to understand the full scope of our challenge.

I want to thank the citizens who have attended the forums in Alpena, Traverse City, Marquette, Flint, Mount Clemens, Detroit, Grand Rapids, and Lansing. I also want to thank those who listened in during the two radio programs and the program on Michigan Government Television (MGTV) that I did regarding the budget situation. If you phoned in with a question, watched from home or read about it in your local paper, you have been engaged in this great exercise in democracy.