Table of Contents
Michigan’s Budget Problem
Background
Effects of 1998 Tax Cuts
Economy
Revenue Problems
May Revenue Consensus
FY2003 Balancing Actions
Postponing A Long-term Solution
General Fund & School Aid Fund Operating Gaps
Economic Outlook Assumptions
FY2003 General Fund Revenue Outlook---May Consensus
Original Budget Proposal:
Time to Cut Spending?
Revenue Enhancements Are Approved
General Fund Arithmetic
FY2003 School Aid
More One-time Revenues
The School Aid Arithmetic
Looking Beyond FY2003
FY2004 School Aid Outlook
General Fund Longer Term Projections Scenario
Medicaid Problems Looming
General Fund Outlook
The Overall General Fund Result
Time to Decide
Approaches to Balancing Budget in FY2004 and Beyond
Cutting Spending
The Remaining 20 Percent
Balancing by Cutting Spending
Higher Education
Medicaid--State’s Options Are Limited--Federal Requirements
Other Community Health Programs
Corrections
Family Independence Agency
Local Government at Risk
Local Government
Other Programs At Risk
Is Increasing Revenue an Option?
Delaying/Suspending Income Tax Cuts
Who Will Solve the Problem?
Most Difficult Budget Situation in 40 Years?
Citizens Research Council of Michigan