January 19, 2007

LANSING - In her weekly radio address, Governor Jennifer M. Granholm today said that Michigan's budget shortfall is at a crisis level as a result of declining revenue and greater human need across the state.
 
"This crisis affects all of us," Granholm said.  "How we solve it will determine the quality of our schools, the safety of our neighborhoods, the cost of college, our ability to attract and create jobs - everything that is important."

According to economists, Michigan's budget is $3 billion short of the revenue needed to cover basic services this year and next.  Granholm said the decline in revenue to the state budget is the result of tax cuts signed over the last seven years and an auto industry in full scale crisis. 

At the same time the state is taking in 30 percent less revenue than just seven years ago, there are more vulnerable citizens in need of health care, more families struggling, more young people to educate, and more criminals to keep in prison.  In addition to providing these services, the state is working to transform its struggling economy.

The current shortfall comes on the heels of four straight years of budget cuts totaling $3 billion to state government.  Governor Granholm has made cuts to higher education, local police, local fire protection, the arts, and adult education and much more - more cuts than any governor before her.
 
Granholm and her economic team are working around the clock, consulting experts from inside and outside government, to find a solution to Michigan's persistent budget problem.  Earlier this month, the governor called together a group of experts led by former Governors Bill Milliken and Jim Blanchard to look at the situation and offer advice and insight.  The panel is made up of Democrats and Republicans who have over 360 years of combined experience.
 
"Dealing with this situation will require bipartisan consensus and cooperation," Granholm said.  "I am hopeful that the tone set by this group of distinguished leaders who were willing to give of their time and talent will set the tone for the debate over how we proceed."
 
Governor Granholm will lay out her vision for Michigan and her plan to solve the budget crisis during her State of the State Address and budget presentation in early February. 

The governor's weekly radio address is released each Friday morning and may be heard on broadcast stations across the state through an affiliation with the Michigan Association of Broadcasters.  The address will also be available on the Governor's website on Mondays as a podcast for general distribution to personal MP3 players and home computers. 

Broadcasters Note: Governor Granholm's radio address can be accessed through Sunday evening exclusively through the Members Only page of the Michigan Association of Broadcasters website. 

Publishers Note: The text of today's address is attached.