Snyder must address the state's fiscal predicament -- a projected $1.8-billion deficit
Tax credits, exemptions and deductions amount to more than $36 billion that is not paid to the state. That's $6.3 billion more than what the state receives in taxes, according to the state House Fiscal Agency.
Property tax credits and exemptions account for another $11 billion not paid to the state. About $9 billion goes to income-tax credits and deductions.
Exemptions for businesses amount to about $2 billion.
One big target this year is the Earned Income Tax Credit for low-income taxpayers. This year, it amounts to $338 million.
The sight of State Police blue patrol cars on highways is a familiar one. But there's broad speculation that Snyder might eliminate those patrols and let county sheriffs and local police pick up the slack...It costs $144 million for 1,008 troopers that patrol from State Police posts.
A 5% across the board cut in employee wages would save the state general fund about $68 million a year, according to the House Fiscal Agency. Requiring state workers to pay 20% of their health care premiums instead of the 10% they pay now would save taxpayers another $50 million.
Revenue-sharing to cities, villages and townships -- where the state writes checks to help pay for local services -- has been a favorite target of budget-cutters for the past decade. In 2000, the state gave communities a combined $1.3 billion. Of that, $1 billion is set by the constitution and can't be reduced.
That compares to $2 billion in total revenue-sharing in 2000. Local officials argue that if the state had used the same formula in every year since, they'd have received an additional $4 billion over 10 years.
Last year, the state reinstated Medicaid coverage for adults for dental, vision and podiatry care at a cost to the state of about $6 million. Critics say those services are not required by the federal government, and many workers have seen those benefits slashed
Read more: State of the State: Painful budget cuts coming | freep.com | Detroit Free Press
http://www.freep.com/article/20110116/NEWS15/101160512/State-of-the-State-Painful-budget-cuts-coming#ixzz1BFadOw9N==============
Billions in tax exemptions are ignored while low income workers, Medicaid recipients, state workers and cops are targeted. And not a word about our crumbling infrastructure or declining state parks.
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