With the impending Oct. 1 deadline to have a new State of Michigan budget in place and a $1.75 billion shortfall, there will likely be layoffs. (More in the article below.)
One of my friends in the Director's Office sent me a note today:
"On Friday, [the legislative liaison] said to me that I could probably start plans to be staying home next Monday. The big dogs here had a shutdown meeting on Friday at 4."
I'm worried. I don't have any savings with one exception. Up until this point I've put all my extra cash towards paying my car loan off (just finished), my credit card bill, and to whittle away at a substantial student loan. Working for the State Police seemed like a secure job up until recently. I've worked here for just over a year which means I am, by far, the low man on the totem pole even though I've been with the State for 8 years. On the flip side, I am the only administrative employee here.
If I'm laid off I probably would not be eligible for unemployment since I work one day a week for the County. (I could be wrong, but I'm fairly certain.) That money though would not be enough to cover my rent, much less anything else. The one positive is that if I'm fired I could cash in my 401(k) which would get my by for about a year if I'm careful. That is my one safety net, though it's intended for my retirement.
My MRI was completed Friday morning and I'm waiting for the doctor to look at it (supposedly today). If I were to lose my job, I wouldn't only be [mostly] out of work and have bills to pay, but I would lose my health care. I have some dental work lined up already and whatever the result of the MRI is, there will inevitably be medical bills that will need to be paid.
I haven't been worried until now. It feels like impending doom. The only real option for me would be to find another job (already very difficult in Michigan with 7.4% unemployment rate - the national average is 4.3%) but here in the U.P. it's particularly difficult to find ANY work, especially with winter approaching. I couldn't afford to live here and I don't have anywhere to go. I would have to move downstate and in with my parents until I do find something else. The only other option would be to move in with Matt and Aaron now that Ben is moving out. I would have my own bedroom and I know Aaron and Matt would welcome me, but I don't consider that a feasible option unless things got *really* tight.
I'm just worried about losing my job and about what I'm going to face if I'm suddenly without health care now that I'm starting to find out what might be wrong with me.
The article:
Senate Cuts $900M, Hundreds Of State Jobs
The Senate passed $900 million in cuts to next year's budget tonight, including the $363 million set aside for a 2.5 percent increase to education (SB 0511). A Senate Fiscal Agency analysis estimated the various cuts to state government could lead to hundreds of state employee layoffs and still leave a $600 million hole to be filled, presumably with a tax increase.
The Senate voted on the bills during a rare Sunday night session in reaction to a Fiscal Year (FY) 2008 budget that's $1.75 billion in the red. If a revenue solution isn't found by end of day Thursday, the House leadership believes government will need to shut down.
Senate Majority Leader Mike BISHOP (R-Rochester) called this evening's movement "progress" and said the night was a "gigantic leap forward" as to where Republicans want to go in budget negotiations.
"If they don't like them, they've got to send something back," Bishop said about the House's perceived reaction to the cuts. "That's how you negotiate."
Minutes before the votes were cast, Senate Democrats were handed nearly 900 pages in cuts that included $116.8 million to the Department of Community Health (DCH), $111.2 million to the Department of Corrections (DOC), $35.9 million to higher education, $207.5 million from the Department of Human Services (DHS) and $7.1 million to community colleges.
"This is not just about numbers," said Sen. Liz BRATER (D-Ann Arbor). "We're talking about cuts to real people with real faces."
Cuts to DCH include moving 19-and 20-year-olds of Medicaid ($12.7 million) and getting rid of Medicaid coverage for caretaker relatives ($25.6 million). Sen. Roger KAHN (R-Saginaw) got an amendment added to the bill that restores $5 million in multicultural grants to this bill. Healthy Michigan takes an $18.9 million whack under the Senate Republican plan.
The DOC cuts include the elimination of three prisons (including the Jackson prison) and $37.5 million in funding reductions for current vacant positions. The bill would also restructure employee overtime. Sen. Alan CROPSEY (R-DeWitt) challenged Senate Dems to point out savings the GOP found that can't be justified.
For example, the bill cuts funding of athletic shoes to level four prisoners, which are almost at the highest security level.
"Right now we give them over $400,000 to provide athletic shoes for people who are locked in their cells most of the time, now give me a break," Cropsey said.
The Department of Education would get a $3.5 million reduction. The majority of the Department of Education cuts come from reductions in the superintendent's office and central support.
The School Aid budget (SB 0237) gets a $363 million reduction. Nearly $290 million comes from not giving students the 2.5 percent per pupil increase recommended by Gov. Jennifer GRANHOLM.
Cuts in this budget also include $28 million to at-risk students, and $20 million each to declining enrollment grants and middle school math grants.
"This means we're not going to invest in the children of this state to make sure they have a strong future," said Sen. Deb CHERRY (D-Burton) about cuts across the board to education.
Sen. Ron JELINEK (R-Three Oaks) pointed out that many of the "cuts" in both bills aren't really cuts. Instead, they actually put funding back at their current levels.
"This is not spending less money, it means smaller raises," Jelinek said. "It means smaller increases. It is not less money in many cases."
Sen. Buzz THOMAS (D-Detroit) called the education spending freeze another one-time fix and suggested that the Legislature actually make some real reforms. Thomas added that the Senate Dems did propose a budget solution in March, but it wasn't taken up by the Senate Republicans.
The School Aid bill also restores 20j funding to school districts. Sen. Irma CLARK-COLEMAN (D-Detroit) said it's unfair to cut funding to poor districts while increasing funding to rich school districts.
The state's 15 universities wouldn't receive a 2.5 percent inflationary funding increase originally assumed in the '08 budget, saving the state $35.9 million. The bill does include the $138.7 million in funding to repay the funding delay that was put into place in FY 2007.
The DHS budget includes $47.2 million in daycare reduction rates, $35.4 million from caseload cost adjustments, $57.1 million from Family Independence sanctions, $18.1 million from departmental budgetary savings and $11.8 million from the closure of the Maxey Boys Training School. Closing this school would result in the loss of 268 jobs.
Sen. Valde GARCIA (R-Howell) was the only Republican to vote against the $900 million in cuts for a vote of 20-18. Garcia said the cuts in that bill were unrealistic, but the funding freeze in the School Aid budget was not.
"We're going to have to live with a freeze in education because there's not enough tax dollars to do that even with a revenue increase," he said.
The School Aid bill passed on party lines 21-17.
The $900 million in cuts still leaves a nearly $600 million deficit in the 2007-2008 budget. Using one-time fixes such as the $220 million in one-time revenue from the Michigan Business Tax (MBT) leaves nearly $600 million to be filled.
The House stuck both bills on the second reading status for the time being. House Speaker Andy DILLON (D-Redford Twp.) told reporters he figured the bill represented some "gamesmanship" on the part of the Senate.
The cuts, by department, included the following:
- Department of Agriculture: $5.1 million.
- Attorney General - $7.6 million, most of which is used to pay employees. This could eliminate 107 employees, or 19 percent of employees from the department.
- Department of Civil Rights - $1.8 million, most of which is employee costs and could result in the elimination of 25 (18 percent) of department jobs.
- Department of Civil Services - $2.7 million, most of it is employee costs and could result in 38 jobs lost.
- Department of Environmental Quality - $7.9 million, including $5.7 million form the reduction of 143 employees and $2.3 million from a GF/GP reduction to the Drinking Water Fund.
- Executive Office - $.2 million.
- Department of History, Arts and Libraries - $6.9 million.
- Judiciary - $7.6 million, which could result in 59 layoffs.
- Labor and Economic Growth - $9.6 million with $2.6 million coming from fire protection grants, $4.4 million from workforce training grants and $1.7 million from welfare-to work programs.
- Legislative Auditor General - $1.4 million.
- Legislature - $7.4 million.
- Department of Management and Budget - $2.1 million.
- Department of Natural Resources - $1.1 million.
- Secretary of State - $14 million, which would result in the closing of 25 branches and the elimination of 80 employees.
- Department of State Police - $14.2 million in cuts including $8.3 million in road patrol grants, $4.8 million in justice training fund grants and $1 million in other administrative reductions.
- Transportation - This includes two transfers of state restricted transporation funds to the General Fund budget.
- Treasury-Operations - $11.6 million, which could result in the layoff of 137 employees
- Treasury-Revenue Sharing - The bill provides for a freeze in revenue sharing payments to locals.