Michigan May see a $1Billion Surplus This Year

**Baselinepunk** · January-04-12, 03:13 PM

bartok - miscommunication. You're correct vis a vis the new tax structure; multitasking took it's toll on my read of your original post. Further, according to a few articles, 2/3rds of corporate businesses will not be paying State tax what so ever; while [[as you pointed out) corporations that are helping this State recover will have to pay more.

In addition, due to this new tax structure the inflation-adjusted dollars for the School Aid Fund will essentially be cut by 500.00 per pupil; and there will be a total of about 1.4 Billion in new tax dollars coming from the State's citizenry by 2013.

I wonder if there is any coincidence that the car companies; the ones who got a Federal loan and employ union workers, are the ones who will now be paying more?

**Hypestyles** · January-04-12, 03:28 PM

regarding the 'surplus', what will be the trickle-down effect, if any, for Detroit?

**Baselinepunk** · January-04-12, 03:34 PM

"regarding the 'surplus', what will be the trickle-down effect, if any, for Detroit?"

Nothing; and like it.

**Hypestyles** · January-04-12, 03:46 PM

the money should be used to remove blight in distressed urban areas, improve services infrastructure and provide mass transit..

**Baselinepunk** · January-04-12, 03:54 PM

There is so much need across the whole State that financial raping that is facilitated by DickCo helps not one bit.

**louis** · January-04-12, 04:09 PM

what to do with the money? burn off as much debt as possible and secure another billion for next year.

**trotwood** · January-04-12, 04:37 PM

Originally Posted by Danny

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.

That seems fair.

**coracle** · January-04-12, 06:05 PM

Originally Posted by Danny

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.

The State of Michigan is recieve 1 billion dollars surplus because it manage it money. If it owe Detroit $220k it would be a good idea to give it back after the election of EM or bankruptcy so that it don't end up going to the current administration to spend and delay the inevitable reckoning for several months. The longer it's left without a decision the fewer the number of people will be left to pay for the solution.

**Baselinepunk** · January-04-12, 06:23 PM

"The State of Michigan is recieve 1 billion dollars surplus because it manage it money. If it owe Detroit $220k it would be a good idea to give it back after the election of EM or bankruptcy so that it don't end up going to the current administration to spend and delay the inevitable reckoning for several months."

That is one dangerous precedent you're suggesting; worse than the screw job the State gave the City of Detroit in the first place.

**ThisIsForTheHeart** · January-04-12, 06:50 PM

Spend it on diversifying the economy. We should have learned that its not good to have all eggs in one basket [[Relying on the auto Industry to run the economy.) Then we can have lots of surplus years!

**Baselinepunk** · January-04-12, 07:11 PM

"We should have learned that its not good to have all eggs in one basket [[Relying on the auto Industry to run the economy.)"

We already are working our way toward that the last few years. Michigan is created the most amount of "green energy" jobs in the country last year.

That's a good start.

**Gistok** · January-04-12, 10:36 PM

Originally Posted by ThisIsForTheHeart

Spend it on diversifying the economy. We should have learned that its not good to have all eggs in one basket [[Relying on the auto Industry to run the economy.) Then we can have lots of surplus years!

Hey... that's a great idea... how about the movie industry.... oh no wait... they ended that... never mind!

**Wesley Mouch** · January-04-12, 11:57 PM

Fascinating reading all the 'give it to me/my' in this thread.

from article: "In general, the surplus is a reflection of good long-term policy decisions made by the Legislature. When you see an influx of cash, you're not necessarily going to go back and get yourself right back into debt by spending it."

Reminds me why I vote Republican [[usually). Somehow, managing your affairs well somehow convinces others to stay here [[auto firms) and then you can do alright. Stabilize businesses first. Then there's hope of money. If you don't, then you are dooming all of us to death by a thousand well-intentioned spends.

**Gistok** · January-05-12, 12:36 AM

Originally Posted by Wesley Mouch

Fascinating reading all the 'give it to me/my' in this thread.

from article: "In general, the surplus is a reflection of good long-term policy decisions made by the Legislature. When you see an influx of cash, you're not necessarily going to go back and get yourself right back into debt by spending it."

Reminds me why I vote Republican [[usually). Somehow, managing your affairs well somehow convinces others to stay here [[auto firms) and then you can do alright. Stabilize businesses first. Then there's hope of money. If you don't, then you are dooming all of us to death by a thousand well-intentioned spends.

I can agree with some of that... but it's the things like the Historic Tax Credit and Brownfield tax credit whose severe curtailment disproportionately hurts Detroit. In that sense it becomes a "look at all the money we've saved by not helping out the state to rebuild" argument...

**MikeyinBrooklyn** · January-05-12, 01:12 AM

Until Detroit can wisely and efficiently [[and honestly) manage the money it has, the state should not consider chipping in another penny. Detroit has a decades long overspending problem. Overspending an additional billion would not help to get out of the hole. All outside revenue and/or one-shot revenues should be 100% applied to paying off city debt.

As for attracting business, stable government with reliably low and simple taxes will attract far more business in the long run than special tax breaks. It's common sense that if some people get tax breaks or incentives or credits, everyone else's taxes are too high [[or they wouldn't need the breaks!). City income tax has caused more people to leave Detroit than the murder rate. A gunshot is not the only way you can get killed in here. Oh, plus the property taxes. On a positive note, though, the marketplace has fixed high property taxes rates with declining property value. When your house is worth nothing, you won't have to pay property taxes!

**Hypestyles** · January-05-12, 02:56 AM

detroit deserves help as much if not more than any other municipality.. scrooges may pat themselves on the back by being stingy and punishing "hopelessly inept" detroit city leadership, while city residents suffer from threadbare city services..

and people will swear race has "nothing to do with it"...

**Hermod** · January-05-12, 05:56 AM

Originally Posted by Hypestyles

detroit deserves help as much if not more than any other municipality.. scrooges may pat themselves on the back by being stingy and punishing "hopelessly inept" detroit city leadership, while city residents suffer from threadbare city services..

and people will swear race has "nothing to do with it"...

You are assuming that if "new money" arrives in Detroit,the current administration will use it to improve services rather than finding a new rathole to pour the money down..

**ghettopalmetto** · January-05-12, 09:45 AM

Originally Posted by Wesley Mouch

Fascinating reading all the 'give it to me/my' in this thread.

from article: "In general, the surplus is a reflection of good long-term policy decisions made by the Legislature. When you see an influx of cash, you're not necessarily going to go back and get yourself right back into debt by spending it."

Reminds me why I vote Republican [[usually). Somehow, managing your affairs well somehow convinces others to stay here [[auto firms) and then you can do alright. Stabilize businesses first. Then there's hope of money. If you don't, then you are dooming all of us to death by a thousand well-intentioned spends.

Interesting that you chose to quote the staffer of a politician, rather than this FACTUAL statement:

A Senate Fiscal Agency study released in December estimated the state's general fund ended the year with a $242 million surplus, and the school aid fund ended with $645 million surplus.
The report credited the resurgence of the U.S. auto industry for aiding the state's recovery.

What did the "responsibility" of Michigan Republicans have to do with salvaging the auto industry?

**coracle** · January-05-12, 11:17 AM

However State funds are accrued is not important. It's the fact they can be accrued that is. Maintaining the accrual and/or using it wisely is the next hallmark of good management. If we had Democrats calling the shots it it would have been spent before they got it on their poor/needy/wanting/union voting constituency and the State would still be in the red.

**Scottathew** · January-05-12, 11:21 AM

I say let's build a fund balance...

**noise** · January-05-12, 11:26 AM

Originally Posted by coracle

However State funds are accrued is not important. It's the fact they can be accrued that is. Maintaining the accrual and/or using it wisely is the next hallmark of good management. If we had Democrats calling the shots it it would have been spent before they got it on their poor/needy/wanting/union voting constituency and the State would still be in the red.

Instead, it will go to new legislation to limit social freedoms in a misguided attempt to turn the country into a "Christian nation". Or, you know, the coffers of big business friends.

See how easy that is?

**Detroitnerd** · January-05-12, 12:22 PM

Originally Posted by Det_ard

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?

Oh, no. I think that, just like last time, the self-correcting system will work. Just as when Moody's and other ratings agencies held themselves to strict standards, and Wall Street rejected obscene, short-term profits in the name of service to the public, this obviously couldn't be anything disastrous in the making.

**coracle** · January-05-12, 01:20 PM

Eh! noise that's a good idea because that's where it came from in the first place! I like your thinking. Better it go back to the people that produced it than those who didn't earn it.

**noise** · January-05-12, 02:32 PM

Originally Posted by coracle

Eh! noise that's a good idea because that's where it came from in the first place! I like your thinking. Better it go back to the people that produced it than those who didn't earn it.

This country will be fantastic when we have a singular wealthy king to rule over us peasants.

**Gistok** · January-05-12, 02:36 PM

Originally Posted by coracle

Eh! noise that's a good idea because that's where it came from in the first place! I like your thinking. Better it go back to the people that produced it than those who didn't earn it.

I take it you missed Noise's word "misguided"....