House Fiscal Agency Paints Murky
Picture for House Appropriations Committee
Much
has been made of the budget shortfall in the state’s current fiscal year that
the Legislature will have to address early this session; however, during their
first meeting this week the House Appropriations Committee learned from the
House Fiscal Agency that their work won’t stop there as the 2015-2016 budget
will bring challenges of its own.
Chairman
Representative Al Pscholka (R-Stevensville) set strict parameters for the
Committee’s operation in the new session after the panel was known for rarely
starting on time during the last legislative session. The Committee’s meetings
will start promptly at 9AM on Wednesdays and, if a quorum is not present, the
meeting will be cancelled and rescheduled for either Thursday afternoon or
Friday.
As
for the information from the House Fiscal Agency, Director Mary Ann Cleary
outlined several areas of liabilities including:
· Personal
property tax reform will cost the state an estimated $126 million in General
Fund revenue in fiscal year 2016 and $350 million in fiscal year 2017.
· Michigan
Public School Employees Retirement System (MPSERS) payments will increase by
$218 million in fiscal year 2016.
· Old
Michigan Business Tax (MBT) credits being cashed-in to the tune of $288.9
million in combined General Fund and School Aid Fund revenue hit in the current
fiscal year and an estimated $526.5 million combined in 2015-2016.
· $50
million this year and another $50 million next year to repay the Venture
Michigan Fund for tax vouchers collateralized in 2006.
Chairman
Pscholka made it clear that one of his primary goals is to better educate the
public on the state budget process so that average taxpayers don’t believe the
state has $53.2 billion to spend any way it wants.