Governor Granholm Blasts Republicans for Protecting Special Interests Instead of Kids, Seniors and Jobs

June 9, 2005

LANSING – At an event today at the State Capitol underscoring the importance of quality long-term care, Governor Jennifer M. Granholm said the House Republican budget proposal has the wrong priorities for Michigan.  Standing with parents, children and workers who will be hurt by the Republican cuts, the Governor called on Republicans to stop protecting special interest tax breaks.

“Michigan’s children and seniors don’t have powerful lobbyists to wine and dine legislators, but they do have a governor who will not stand by quietly while they are sacrificed to protect corporate tax breaks,” said Granholm.  “We can be fiscally responsible and balance the budget without these cruel and destructive cuts that hurt our families and the economy.”

Granholm’s budget proposal for the coming fiscal year alone includes nearly $400 million in spending cuts.  It increases the K-12 foundation grant for schools and preserves health care for seniors and children.  To balance the budget, Granholm proposes closing $112 million in loopholes rather than cutting children or seniors off of health care.  

The House Republican budget:

• cuts more than 15,000 families – and 30,000 children – off public assistance;
• cuts support for families struggling to make ends meet, leaving them at just 30 percent of the poverty level; 
• eliminates health care coverage for people who take in the abandoned or orphaned children of relatives;
• cuts child care funding for 43,500 children;
• closes two correctional facilities in the Upper Peninsula, threatening the release of more than 1,300 prisoners;
• cuts millions in job creation services, severely hamper the state’s ability to attract and retain good paying jobs;
• freezes the home-based waiver program which allows seniors to continue living in their own homes.  Cutting this cost-effective program will force more seniors into nursing homes.

The Governor called the House Republicans’ refusal to support her proposal to close a number of corporate tax loopholes disappointing.  The $112 million in loopholes recommended for elimination by the Governor would go a long way towards balancing the budget without sacrificing critical services to the poorest of the poor.  There are 170 tax expenditures in Michigan’s tax code that cost taxpayers over $29 billion a year.

“The House Republicans have chosen to protect corporate tax loopholes instead of Michigan children and Michigan jobs” said Granholm.

The Governor said the Republican House proposal cuts children, seniors, and job creation.  She said cutting economic development and transportation in Michigan is short-sighted and will be “bad for our people and bad for the economy.”

“People need transportation to get to work – we need people working to grow our economy,” said Granholm.  “Transportation, job training, and business development are all critical to our state’s future.  Those are our priorities for the future.”

Governor Granholm also took exception to the notion that her administration has not made the tough decisions necessary to balance the budget during these difficult economic times.  As governor, she has presided over the resolution of over $3 billion in budget shortfalls and has cut more from state government than any governor in Michigan’s history – all while preserving the social safety net, protecting education, and promoting job growth. 

“We have proven year after year that we can make the tough choices necessary to balance the budget without hurting our children or our families,” said Granholm.  “The values contained in the House Republican’s budget are not Michigan values.  They are not the priorities the people of this state asked me to protect, and they will not pass my desk.”

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