June 01, 2004
June 1, 2004
LANSING – Governor Jennifer M. Granholm said today that unless state lawmakers act on her recommendations to resolve the state’s 2004 budget shortfall by June 15, they will be responsible for deep cuts to K-12 education and health care.
The Governor’s budget recommendations, which she outlined earlier this spring, include July 1 increases in the cigarette and liquor taxes.
“Last week the House of Representatives took the first step to resolve the current budget shortfall, but it didn’t get the job done,” Granholm said today. “Instead of standing up for kids, they chose to line the pockets of the tobacco interests with money that should be used to protect education funding and health care for the vulnerable.
“Today, I am calling on the Legislature to pass my budget recommendations as proposed to prevent further serious cuts to school funding or health care,” Granholm added.
Granholm also questioned the House’s adoption of provisions that will provide tobacco interests with $35 million this year and $12 million each year thereafter. That money would otherwise be directed toward education and health care.
On May 19, the Governor outlined a fiscally responsible plan to state lawmakers that appropriates $50.1 million from the General Fund to the School Aid Fund. She noted that reducing school aid payments this late into their fiscal year would have a particularly devastating budgetary impact on school districts since the cuts would be made in payments in July and August.
Without the July 1 effective date for the revenue enhancements, education and health care will lose nearly $1 million in revenue every day.
