Budget Basics

Budget BasicsThe State Budget: A Matter of Priorities

Renell Weathers, Outreach Directorrweathers@mlpp.org

2013

The League’s Mission

To foster economic opportunity, independence and security for Michigan families by shaping public policy through objective data-driven research,

education and advocacy.

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MONEY IN MONEY OUT

REVENUE APPROPRIATIONS

Where the Money Comes From

Fed-eral

Funds43%

Sales and Use Taxes18%

In-come Taxes17%

Other 21%

Business Taxes1%

FY 2013, Total Spending = $46.9 billion

Where the Money Goes

Community Health; 31%

K-12 School Aid and Edu-cation; 28%Human

Services; 14%

Other Depts. & Ser-vices*;

27%

3 of Every 4 Dollars (State and Federal) Go to 3 State Departments.

*Includes Transportation (7.2%), Corrections (4.2%, Higher Education & Community Colleges (3.5%), Revenue Sharing (2.3%) and others.

The Big Tax Shift

Taxes on Businesses CUT

83%

Taxes on Individuals UP23%

The Budget ProcessIntroduction - Governor’s Budget Recommendation

Late January – Mid-February

Subcommittee Deliberations and Full Appropriations

Committee ReviewFebruary – April

First Full House or Senate Action

Mid-April

Second Full House or Senate Action

April-May

Conference CommitteesLate May – Mid-June

Governor Review/Signature & Budget Bills Enacted

Mid-June – July

8

Options:1. New revenue2. More cuts3. Executive order 4. Balanced approach

A Decade of Disinvestment

Community Hea

lth

Correcti

ons

Human Se

rvices

K-12 School A

id

Community Colle

ges

Higher

Educati

on

Reven

ue Shari

ng

All Other

Programs

Total

State

Spen

ding-30%

-15%

0%

15%

30%

45%

60%53%

21%

-7%-1% -5%

-29%-25%

16%7%

Perc

ent C

hang

e

Change in DetroitCPI FY 2003-FY 2013: 21%

• Most major policy decisions are made at least partly through the budget process.

• Families affected by poverty need stronger representation.

Be Part of the Budget Process!

• Save our Youth

• Save our Families

• Save our Cities

What Action is Needed to:

• Increase per pupil funding

• Stop out of school suspensions

• Provide Ceasefire funding

Invest in our Youth

• Restore EITC (Earned Income Tax Credit) to 20% of Federal EITC

• Restore Revenue Sharing to fund public safety and public transit

Restore Funding for Families and Cities

• Reduce juvenile incarceration

• Eliminate highway expansion

• Cut tax credits to corporations

Reduce Funding for Prisons and Highways

Thank You!rweathers@mlpp.org

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