Legislature proposes July state budget deadline

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After the Michigan Legislature missed its Oct. 1 budget deadline twice in the past three years, some members of the House of Representatives are proposing stricter regulations to the budget process and consequences for failing to meet the deadline.

Freshman legislators proposed a state constitutional amendment last Thursday to move the state budget deadline to July 1 and dock legislators’ pay for each day the deadline is missed.

The move comes after the Michigan House and Senate did not balance the state’s $2.8 billion deficit on time last Wednesday, leading to a two-hour partial government shutdown before a deadline extension was approved.

State Rep. Bill Rogers, R-Brighton, a co-signer of the proposal to impose a July 1 deadline, said the situation frustrated some lawmakers.

“This is the only thing that we are really required to do — have a balanced budget,” Rogers said. “There is no excuse for not getting it done.”

The amendment has 27 co-signers — 14 Democrats and 13 Republicans — all of whom are in their first term in the House, Rogers said.

School districts, local governments and many universities (including MSU) rely on state aid and begin their fiscal year, which begins July 1, three months before the state budget is due. Supporters of the amendment said aligning the state’s budget deadline with other agencies would be a benefit to all.

“It would put us in line with other budgets that count on what the state is doing and what levels we are appropriating,” said Rep. Dave Hildenbrand, R-Lowell.

This change would eliminate uncertainty as MSU plans for each school year, said Eric Scorsone, co-director of MSU’s state and local government program and an expert on budget negotiations.

“Right now, (the university plans) for the school year without knowing what is going to happen with the state,” Scorsone said.

It still is unclear how much pay legislators would lose for each day they continue negotiations past the July 1 deadline, but Scorsone said withholding legislators’ pay — which begins at $79,650 — is a good way to regulate the budget process.

A state constitutional amendment requires a two-thirds approval from both the House and Senate before the public can vote on the change.

“A July 1 deadline will allow these different groups that would be impacted to adjust their own spending and budgets to be in line with revenues from the state,” said state Rep. Douglas Geiss, D-Taylor. “But as with any constitutional amendment, it is up to voters.”

Both the House and the Senate are scheduled to resume budget deliberations for the 2009-10 budget today. There are 14 of 15 areas of the $40 billion budget ready for Gov. Jennifer Granholm to sign, but K-12 funding still is unresolved, Rogers said.

After Michigan’s temporary budget passed, Granholm said she would use the 30-day extension to veto bills calling for steep cuts to education and public safety. Granholm’s spokeswoman Megan Brown said the governor supports the amendment and, in the future, there should be no reason to extend the deadline.

“Many organizations that rely on funding start their year on July 1,” Brown said. “There is simply no reason to delay the budget until the start of the fiscal year.”

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