The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

If the state of Michigan is broke, why the surplus?

Feb 21, 2005

When employee wages and benefits were being negotiated, the state said they expected a terrible budget deficit. How did things turn out?

For the fiscal year that ended on September 30, 2004, the state of Michigan ended up with a budget SURPLUS of 155 million dollars.

And for the new fiscal year so far, REVENUES are UP for at least seven different categories of taxes the state collects.

With tax revenues up, it didn't take long for politicians to start promising more tax cuts to big business and corporations. Granholm is proposing to cut the Single Business Tax, which is the main tax on corporations. No wonder the state has budget problems.

If you thought that Democrat Granholm would restore money taken from state workers and the poor, think again.

No. Granholm proposed more cuts in state programs which are already threadbare, programs like Medicaid.