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Daylight on the Grand Bargain?

by: wizardkitten

Tue Feb 09, 2010 at 10:28:11 AM EST


With all due respect to those who are running for office, we have a budget issue that needs to be addressed this year - and the sooner the better. If Lansing takes this to another crisis stage, every single incumbent out there will probably face the wrath at the polls, and no one from either party wants to see that happen. They have their jobs to think about, those that are term-limited have their legacy to think about. Who wants to leave this job as being part of the most dysfunctional legislature ever? Hopefully no one.  

So, while Mike Bishop runs around and says "no, no, no" to any sort of compromise, it is very interesting to find that we have not one, but two, Senate Republicans from the west side indicating that an expansion of service taxes would get through the Senate, as long as they get that pound of flesh from the state employees on health care.

(Mark Jansen, R-Gaines Township) said proposals to expand sales taxes to services, the growing sector of the economy, must go hand-in-hand with reforms like he and Hildenbrand have proposed, such as mandating public employees contribute 15 percent to their health care costs.

"I can't do a sales tax on services until I know we are going to get these reforms, because I don't want to be back here in two years," Jansen said. "We have to fix structural problems like health care.

Rockford Superintendent Michael Shibler said the proposed legislation could send $1.3 million back into his district's classrooms, and pressed the panel about whether districts could expect passage this year.

"This has to happen now. We can't keep waiting," he told them.

Hardiman said he thought it would pass the Republican-dominated Senate. But Hildenbrand said he needs help from residents and other groups to push it out of the Democratic-majority House. The unions have opposed such a change.

Jansen is one of the most conservative members of the Senate. Bill Hardiman is not far behind him. If they are indicating that service taxes are a possibility, that is a good sign. Granholm has proposed an increase on health care contributions for new hires, while offering early retirement to those on the old pay/benefit scale. And don't forget the new state run plan that the governor has branded as voluntary - and that is probably where Dillon's idea comes in. There are a lot of moving parts to this plan that could crash and burn the whole thing, but the fact that "no" wasn't the instant answer from these Republicans is an excellent starting point.

Were they just trying to placate an angry mob that wants the schools funded? It's a possibility, sounding reasonable for the audience, only to get back to Lansing and continue with their obstruction tactics. Time will tell - but now we have them on record as being open to the idea of reforming the tax base. The next time Mike Bishop says that "he doesn't have the votes", we will know that is not true.

Granholm releases the budget plan on Thursday. Stay tuned.  

wizardkitten :: Daylight on the Grand Bargain?
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Is this race to the bottom politics? (4.00 / 2)
Yes and no. It sounds similar to what the UAW and the auto workers agreed to with the auto makers. I don't like the idea of new hires coming in at less pay and bennies, but I don't see a way around it, because no one is going to be out there fighting for tax increases alone.

(I would, but I want us to be Denmark, and that ain't happening. I know better.)

If it's a voluntary agreement that they can vote on and live with, well, at that point it's better than the one-time, quick fix, contract busting deal that Bishop has offered.  


Still skeptical (4.00 / 2)
I expect Granholm on Thursday to propose extending the sales tax as part of her budget package, but from what I hear it will be Democrats who may be a high hurdle in addition to Republicans.

Democratic lawmakers took it on the chin with revenue votes last year that went nowhere in the Republican Senate despite Dillon's sweetheart relationship with Bishop.   They will want to see Republicans move first in the Senate this time and my bet is they will want more than a couple of GOP tax votes before putting theirs up.


Since scrutiny will be on Dillon after he announces (4.00 / 1)
He has to make this work this year.

He bows to Bishop again - and his run for governor is over. He has an uphill climb as it is, so the pressure will be on to produce, and the media should be paying closer attention this time.

He is making noises like he will do the right thing, so I've been holding back on him for now. BUT, if I start to see the same 'ol crap from the House, I will go ballistic again.

Just once I'd love to see some Dem stand up and proudly say:

"I voted to fund the schools!"
"I voted to fund the Promise Scholarship!"
"I voted to keep cops on the street!"

People WANT these things - Democrats should use it.

Or, they can sit there like a bunch of frightened puppies, crash the government into the wall again, and lose their jobs.  


[ Parent ]
I agree, Granholm will probably propose a tax on services...again (4.00 / 1)
I don't think it will be an problem for Democrats to vote for a tax increase.  Polls show that the public supports increasing taxes.  A cuts only budget will make more people angry than a tax increase.

I have my doubts about whether this grand bargain will happen too.  After the last year or so, it's hard to not be pessimistic about the congress doing its job.  


[ Parent ]
A voluntary state run plan for state employees! (4.00 / 2)
Well...as long as it's not a Public Option, I'm fine with it ;)

"What do we want?"
"Voluntary state run plan!"
"When do we want it?"
"Now!"


LOL (4.00 / 1)
At one point Dillon was indicating that individuals might be able to join his plan (if I'm remembering it correctly).

I don't think ANY of this will address spiraling costs though. In theory, the more people in the pool, the better. It hasn't worked that way in practice lately, and now we are at the point where more than half of all health care spending in the US will be for Medicaid/Medicare and other government programs by next year.

"Socialized" medicine is already here, whether the Republicans like it or not. When the system as it stands collapses, we will get the public option, and that might come sooner than we think. People will demand it. Until then...


[ Parent ]
Thought for Today (4.00 / 1)
Always vote for principle, though you may vote alone, and you may cherish the sweetest reflection that your vote is never lost.  -John Quincy Adams

Jackson County went blue in 2008!



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