Michigan May see a $1Billion Surplus This Year

Buy American · January-04-12, 10:22 AM

"The report credited the resurgence of the U.S. auto industry for aiding the state's recovery."

WHAT YOU DRIVE, DRIVES AMERICA....and specifically here in Michigan and Detroit.

**Islandman** · January-04-12, 10:29 AM

Link please?

**1953** · January-04-12, 10:34 AM

Let's put it in savings.

**ResurgetCineribus** · January-04-12, 10:57 AM

Ready. Set. Squander.

**JBMcB** · January-04-12, 11:07 AM

Step 1: Take care of any mortgages, fund borrowing, or other short-sighted debt-laden budget fixing measures the state has undertaken in the past

**Baselinepunk** · January-04-12, 11:22 AM

Easy, folks. This money is not up for anything other than returning it to the people who got screwed in the "pension reforms" that occurred. The 1/4 billion savings from this past fiscal year will most likely be used to repay those people that JennyEngler screwed, and that was only the first of the two lawsuits the State lost/will lose.

bartock · January-04-12, 11:38 AM

Originally Posted by Baselinepunk

Easy, folks. This money is not up for anything other than returning it to the people who got screwed in the "pension reforms" that occurred. The 1/4 billion savings from this past fiscal year will most likely be used to repay those people that JennyEngler screwed, and that was only the first of the two lawsuits the State lost/will lose.

People did not get screwed in the pension reforms, I doubt they will do anything with that. As for the second part, that seems a bit more likely.

I don't see MI paying down long-term debt. I believe Michigan's is something like 19% of its GDP, which is middle of the road territory.

**Danny** · January-04-12, 11:49 AM

This State of Michigan is recieve 1 billion dollars surplus while Detroit is flat broke!

This State of Michigan owes Detroit over 220 million dollars. Detroiters want that surplus.

**Detroitnerd** · January-04-12, 12:38 PM

See how they do us?

Buy American · January-04-12, 12:38 PM

Originally Posted by Islandman

Link please?

Sorry.

http://www.detroitnews.com/article/2...CS02/201040375

**Bham1982** · January-04-12, 12:44 PM

How about using the money to restore benefits to the most needy?

That was pretty heartless, eliminating our social welfare net in exchange for significant tax cuts for wealthy business owners.

Michigan nowadays pretty much has the social safety net of the Deep South states. That will come back to bite the state's economy. Do you want to emulate Mississippi or Massachusetts?

**antongast** · January-04-12, 12:48 PM

Originally Posted by Detroitnerd

See how they do us?

More clearly than ever. It's a complete outrage for the state to be running a surplus right now.

**Patrick** · January-04-12, 12:54 PM

Originally Posted by Detroitnerd

See how they do us?

Well, what % of that billion came from the City of Detroit specifically?

**Baselinepunk** · January-04-12, 01:08 PM

"People did not get screwed in the pension reforms, I doubt they will do anything with that. As for the second part, that seems a bit more likely."

When the State purposefully circumvents the State Constitution; people get screwed. We also get screwed thinking that there is extra money when there is none. Public school funding has been raided, that screws employees and children when they have to eliminate important positions and programs.

The notifications have already went out informing some folks that they will be made whole per the lawsuit. It's only a matter of time before the courts rule in favor of the people in the second lawsuit -- both situations were willfully unconstitutional.

Also, we should all be aware that the Republicans are already taking credit for the creation of jobs the union and auto industry facilitated:

""We started talking about the impact [[of eliminating the tax) in early 2011," said Joe Serwach, managing director of communications for the Michigan Economic Development Council. "And this has been the first year since 2000 that Michigan had substantial job growth. Newsweek said in August that Michigan was the number one state for job growth. … So I think we've already started to see the benefit.""

http://www.detroitnews.com/article/2...text|FRONTPAGE

The State turnaround has nothing to do with what DickCo did with the budget, and I believe they raised taxes on businesses like Ford, GM and Fiat. The faux "bailout" [read Government loans] are what help turn our State around by providing an opportunity for the automotive industry to get their shit together. Again, nothing to do with what DickCo did with the budget.

**Mikeg** · January-04-12, 01:28 PM

Originally Posted by bartock

People did not get screwed in the pension reforms.....

This pensioner is looking at a 200% increase in my state 2012 income tax bill compared to 2011, with no increase in my income. However, you need not feel sorry for me, feel sorry for the people who would have otherwise benefited from the money that myself and other pensioners can no longer afford to spend locally or donate to charitable causes.

When the state collects more income taxes from pensioners who are on a fixed income, they are reducing both the pensioner's disposable income and discretionary income. Since pensioners are not typically putting any of their discretionary income into savings, their reduced discretionary income means they will be cutting their spending on non-essential goods and services as well as on their donations and charitable giving.

Can the state of Michigan really afford to annually take a quarter-billion dollars of pensioner's spending out of our fragile local economy so that it can instead be spent out of Lansing in the public sector? How much of a negative effect will this have on our non-profit organizations? The extra withholding has now kicked-in on those monthly pension checks and we are about to find out.

**Detroitnerd** · January-04-12, 01:29 PM

Originally Posted by Patrick

Well, what % of that billion came from the City of Detroit specifically?

Lansing cut revenue-sharing for cities. I don't know why you want to frame this as a City of Detroit issue, though. The revenue-sharing cuts are hurting all cities, and I don't know if you've noticed, but even municipalities in Oakland County are starting to feel mighty pinched these days. Every time you see a cop pulling somebody over to make up for revenue that a city has lost, that's another example of "us being done."

**Detroitnerd** · January-04-12, 01:33 PM

Don't fool yourselves. This is a massive transfer of wealth from the have-nots to the have-plentys. Don't kid yourselves that it's good drama to see Lansing kick the state's largest city in the stomach. We're all connected. And we're all hurting.

"Sitting here in my safe Oakland County home,
Don’t wanna go back there again."

**DetroitPlanner** · January-04-12, 01:47 PM

While eveyone is making suggestions on how to spend Dick;s money, I suggest we use some of it to pay down the massive amount of debt that the state is in. It has floated billions in bonds all throughout the Engler and Granholm adminstrations to pay for expansions of unniverity campuses and to rebuild roads. By paying off some of that, we free up dough needed to no longer beholden to bond holders and save a ton in interest.

**Baselinepunk** · January-04-12, 02:06 PM

"It has floated billions in bonds all throughout the Engler and Granholm adminstrations to pay for expansions of unniverity campuses and to rebuild roads."

Let's also include the couple of billion DickCo just floated for paying the Feds back for unemployment loan.

bartock · January-04-12, 02:18 PM

Originally Posted by Mikeg

This pensioner is looking at a 200% increase in my state 2012 income tax bill compared to 2011, with no increase in my income. However, you need not feel sorry for me, feel sorry for the people who would have otherwise benefited from the money that myself and other pensioners can no longer afford to spend locally or donate to charitable causes.

When the state collects more income taxes from pensioners who are on a fixed income, they are reducing both the pensioner's disposable income and discretionary income. Since pensioners are not typically putting any of their discretionary income into savings, their reduced discretionary income means they will be cutting their spending on non-essential goods and services as well as on their donations and charitable giving.

Can the state of Michigan really afford to annually take a quarter-billion dollars of pensioner's spending out of our fragile local economy so that it can instead be spent out of Lansing in the public sector? How much of a negative effect will this have on our non-profit organizations? The extra withholding has now kicked-in on those monthly pension checks and we are about to find out.

Then you are getting a helluva pension to begin with, or were hardly paying any state taxes before.

Who is getting screwed by this? This is the partial end of a benefit enjoyed by pensioners in a few states.

Under the new changes, a married person with a $50,000 pension will now pay about $430 in state income tax.

A married person with a $50,000 income will still pay $2,150 in state income tax, taking THAT money and spending out of our fragile local economy, as it always has.

With respect to where that money has gone [[these so-called business tax breaks), I don't necessarily agree. The "benefit" of the corporate breaks will undoubtably be touted, but even Lansing seems to agree that the economic turnouround this state finally appears to be starting is tied to sales of automobiles, not corporate tax structure.

**Detroitnerd** · January-04-12, 02:23 PM

Originally Posted by bartock

even Lansing seems to agree that the economic turnouround this state finally appears to be starting is tied to sales of automobiles, not corporate tax structure.

And the sales of those automobiles? Those loans are being bundled into tranches by big banks and sold to investors as AAA-rated ....

Have we been here before?

bartock · January-04-12, 02:26 PM

Originally Posted by Detroitnerd

And the sales of those automobiles? Those loans are being bundled into tranches by big banks and sold to investors as AAA-rated ....

Have we been here before?

...so easily forgotten when the money starts coming back in.

**Baselinepunk** · January-04-12, 02:26 PM

"The "benefit" of the corporate breaks will undoubtably be touted, but even Lansing seems to agree that the economic turnouround this state finally appears to be starting is tied to sales of automobiles, not corporate tax structure."

bartok -- Corporate taxes are going up; if you're a C Corp. C Corporations will not have a "benefit".

bartock · January-04-12, 02:37 PM

Originally Posted by Baselinepunk

"The "benefit" of the corporate breaks will undoubtably be touted, but even Lansing seems to agree that the economic turnouround this state finally appears to be starting is tied to sales of automobiles, not corporate tax structure."

bartok -- Corporate taxes are going up; if you're a C Corp. C Corporations will not have a "benefit".

I'll take it back if I was wrong, but I thought C Corporations are now going to pay a flat 6% tax. As I understood it, while the biggest C Corps may actually pay more, the smaller C Corps and S Corps will be going down, hence the huge tax shortfall with the new structure in place.

**Det_ard** · January-04-12, 02:58 PM

Originally Posted by Detroitnerd

And the sales of those automobiles? Those loans are being bundled into tranches by big banks and sold to investors as AAA-rated ....

Have we been here before?

Do you think all collateralized debt obligations are the same? Do you have information that leads you to believe that auto-loan pools are being mis-rated? Or was this just a little free association brain burp?