Tuesday, January 23, 2007

Our State of Dis-Union

It’s a big night for Bush and he needs to find his inner “thousand points of light” to come through it. This is an unlikely feat but I enjoy watching the underdog. With his approval ratings sagging to 36% and his new troop surge into Iraq not picking up much enthusiasm as hoped for, the president’s new strategy is not too hard to guess. Instead of focusing on his coined “axis of evil” from years past, he will try and score points with the environment and immigration. Both of these issues were good plays with the public in his first years on board with the nation and he can gain more ground offering solutions here than anything that he could add with the Iraq debacle. I remember watching him during the debates or one of his first televised speeches before Congress when he declared something needed to be done about America’s dependency on oil. Odds are he will pull out that phrase again tonight along with some other gems from his first campaign. Bush will spend time on Iraq but at this point he is putting it on the Democrats to quit complaining and find a way to make things work over there. I was impressed with Hillary Clinton on the Today Show this morning who confirmed this willingness to start making headway here. She was of course pandering a little since her 2008 opponent John Edwards has been giving her grief in Iowa.

On to Michigan!


Our State of the State address isn’t till February 6th but Grandholm has a big budget deficit to explain. Unless you are out on a skiff in the middle of Lake Superior or live in a tepee in the great north woods, odds are you heard about the $800 million dollar shortfall in the state’s budget. Earlier projections said we could have a $375million shortfall so Grandholm is going to have to account for that extra $400 million by doing cuts, big ones, to local services and schools and then increase taxes. If the tax receipts are $570 million below projection people must be literally running out of the mitten. Whatever our governor has cooking downtown right now better be good. It’s going to take a lot to turn around this one way train to discontent.

One question I stupidly pose, if not rhetorically is how this does happen in an election year? They could only get away with this over sight in an election year. No one is shocked that Michigan has problems, but $400 million of unaccounted for problems is a fine example of what happens when a poor economy meets and inefficient state government.

In my area of the biz, I’ve talked with school districts about dealing with the school aid cut of up to $220 per student. About half the schools in the state are going to go into deficit as a result since budgets are already tight. I’ve heard some ideas like “pay to play” sports programs or cut tutoring programs. In other areas in trouble: prisons are to release non-violent criminals early on tethers, cuts in police and fire protection, trash pick up, road repairs, and many other services. The list goes on.


Hope this didn't get you too down, fellow Michiganders. Much like the weather here, this too will pass...hopefuly sooner than later. As the Monty Python always says, "No one expects the Spanish Inquisition." Believe it or not it could be worse. Cheer up ya old buggers!

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