KEY LEGISLATION:
Governor submits budget eliminating projected deficit
Governor Jennifer Granholm presented her 2003-04 fiscal
year budget in
person to a joint session of the House and Senate Appropriations Committees.
The $38.6 billion proposed spending plan eliminates a projected $1.7
billion
deficit by cutting programs and increasing revenues—but without
a general
tax increase on individuals or businesses.
"This is a budget that causes some pain, but captures
our priorities and
keeps our promises," the governor declared. Her budget spares per-pupil
spending for K-12 schools and leaves a scheduled income tax reduction
in place.
Revenue increases totaling an estimated $403 million
include boosting the
diesel fuel tax by 4 cents, closing "tax loopholes" in the
Single Business
Tax and doubling driver’s license fees. The Michigan Information
and
Research Service (MIRS) reported that the budget contains some 70 different
fee increases and loophole closings.
Spending reductions total an estimated $937 million,
including a 6.5 percent
cut in aid to public universities, a 50 percent cut in arts grants,
a 3
percent cut in revenue sharing to municipalities and cuts in adult education
and scholarship programs.
The budget recommends restructuring the Medicaid program
through a waiver of
federal rules that would limit medical benefits for healthy adults and
increase federal funds. Officials said the recommendations do not include
any cuts in Medicaid provider fees. The governor also proposes to nearly
triple enrollment in the Elder Prescription Insurance Coverage program.
A working group comprised of chain-drug members of the Michigan Retailers
Association and members of the Michigan Pharmacists Association will
be
studying the budget proposals closely to determine their effect on members
of both organizations.
Although at least one Republican lawmaker voiced opposition
to the hike in
the diesel tax, Senate Appropriations Chair Shirley Johnson (R-Royal
Oak)
appeared to be keeping an open mind on the total budget. "They
needed to be
as creative as possible, and I think they were," she told MIRS.
"I’m not
going to criticize them for trying to solve this monumental problem."
KEY BILL INTRODUCTIONS:
No Bills to Report at this time.
To view the content and current status of retail-related
bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
Specific comments or questions regarding this bulletin
should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
