February 17, 2005

Praises Speaker DeRoche, House Leadership on Balanced Budget

LANSING – Governor Jennifer M. Granholm today called the State Senate’s rejection of her order to reduce state spending in the current fiscal year fiscally irresponsible and accused the upper chamber of standing in the way of balancing the state’s budget.

"Balancing the state’s budget requires tough choices," said Granholm. "I proposed a solution that cut state spending, protected the people’s priorities, and still increased funding for our state’s universities. The House of Representatives was unanimously willing to stand with me in making the tough decisions to bring state spending in line, but the State Senate demonstrated that it would rather be fiscally irresponsible and continue spending money the state doesn’t have."

"Speaker DeRoche and his colleagues understand that if we are to grow our economy, we must spend within our means," Granholm added. "The Senate leadership’s decision to reject the executive order demonstrates that it is obstructionist in every sense of the word."

As proposed, Executive Order 2005-3 would reduce spending in state government by $227.1 million. A negative supplemental bill combined with the use of fund reserves resolves the remainder of the $375 million shortfall for fiscal year 2005.

"The House of Representatives demonstrated its willingness to work toward a resolution of this problem in a thoughtful way," Granholm said. "The citizens of this state expect leadership, and leadership requires tough decisions – that notion seems to be lost on the State Senate."

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