September 08, 2010
September 8, 2010
Targets reflect administration's priorities for a new economy, include critical investments, spending reductions and reforms
LANSING - Governor Jennifer M. Granholm today issued the following statement on the agreement reached with legislative leadership that paves the way for final action on the 2011 general fund budget:
"The agreement we've reached reflects our state's most important priorities: creating jobs, educating children, and protecting citizens while building on the steps we've taken over the past seven years to address the fiscal challenges caused by the national recession and struggles in the auto industry.
"The agreement cuts state spending, attacks the state's structural deficit, and continues reforms in government. These changes are essential if we are to maintain our critical investments in job-creation and education and provide the services citizens need during this time of economic transition."
The agreement reflects the governor's continuing effort to reform state and local government to make it less costly, more flexible, and better able to serve the needs of citizens. The budget includes savings from reforms the governor outlined in January, including changes to the state employee retirement system that are expected to result in the retirement of more than 6,000 employees, a lower-cost health-care plan for new state employees, and incentives for shared services or consolidation among local school districts. In addition, the agreement includes spending cuts that impact every state department. Altogether, the budget will include approximately $600 million in general fund spending reductions.
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