Today, the Legislature was presented with my recommendation for the 2010 state budget.  My  proposal addresses the over-arching reality that Michigan's economy is likely to get worse  before it gets better.

The budget recommendations address Michigan's ongoing structural budget problems.  The  reforms and spending cuts will be painful.  Unfortunately, they are necessary if we are to  weather this current economic storm. 

The impending action by Congress on a federal economic recovery package may create a strong  temptation to put off difficult budget decisions, but we cannot allow one-time funding from  Washington to weaken our resolve to get our fiscal house in order.  Instead, we must  continue to take difficult steps now to reform our government to ensure that Michigan can  meet its economic needs long after those one-time funds are gone. 

Knowing the great sacrifices that state employees have made in recent years as we have  struggled with more than $6 billion in budget deficits, I would not recommend these steps if  there were a better way to eliminate the structural deficit that continues to plague us.   After careful consideration, however, I have concluded that if we are to survive this  economic storm, we must continue to downsize our government. 

What we are going through right now is parallel to what is going on in the private sector  with factories and offices closing, layoffs, pay cuts, and increased costs for benefits.   This is not a situation many of us could have imagined when times were good.  However, this  is the hand we have been dealt, and we must continue to forge ahead. 

I deeply appreciate your unparalleled service and commitment to the people of Michigan in  these unprecedented, challenging times.  Government employees are often on the receiving end  of criticism from people who do not know the fantastic work you do.  I, for one, do know the  service you perform every day, and that is why I am so appreciative of your work.  On behalf  of all of Michigan's citizens, thank you for your choice to serve - especially now.

Gratefully,
Jennifer Granholm
Governor

For more information about the 2010 budget, please click here:  www.michigan.gov/budget