In Blog: Factually Speaking, Budget Priorities

A version of this column originally appeared in The Alpena News.

The holiday season may be over for many, but we here at the Michigan League for Public Policy celebrated the first holiday of our state’s budget season last Friday: CRECfest. 

CRECfest was our unofficial title for a very official and important meeting convened by our state fiscal agencies each January to determine the anticipated revenues for the state’s next budget year. While we like a festive name, the event is more commonly known as the Consensus Revenue Estimating Conference, or CREC. CREC serves as the kickoff of the state’s budget process and it sets the basis for the governor’s budget recommendation, which is typically announced in February. A second conference is held in May, which will set the table for final negotiations on the state budget. 

Good news came out of last week’s conference, with revenues coming in higher than expected for both the state’s General Fund and School Aid Fund. While this is a clear indicator of our state’s stable economic standing, it’s important that our state leaders and lawmakers recognize that we are in uncertain times and that we don’t know what may happen under the incoming federal administration. 

Here in Michigan, we are particularly vulnerable to potential federal cuts, given that federal funding has made up more than 40% of our state’s budget over the past few years. And there is good reason to be concerned about the possibility of future cuts to programs and funding at the federal level, in light of what we heard on the campaign trail leading up to last November’s election and what we have heard since the election in this period leading up to Inauguration Day. Here at the League, some of the things we are particularly concerned about are potential federal cuts to healthcare, food assistance, child care and schools.

In this time of uncertainty it’s critically important for our state lawmakers to remain focused on the people of Michigan and what they need most to not only survive, but thrive. That means keeping kitchen table issues like healthcare and prescription drug costs, access to healthy and affordable food, strong education systems, child care access and affordability, and housing and utility costs at the forefront of budget and policy discussions in the weeks and months ahead. 

These are the issues that remain top of mind for many Michigan families, especially the approximately 4 million Michigan households that are facing financial hardship. These are also the issues that are of critical importance to the more than 2.1 million children growing up in Michigan today, including the nearly 1 in 5 Michigan children living below the poverty line. Each and every one of these children deserves to grow up with a safe place to call home, healthy food on the table, a strong education, and quality early child care and healthcare. All of these things are critical to ensuring they get the right start in life and grow up healthy and strong. 

In addition to centering the most critical needs of Michiganders during this year’s budget process, we are also calling on our lawmakers not to heed calls for tax cuts in light of the recent CREC projections as we know they will largely benefit the wealthiest of Michiganders due to our state’s upside-down tax structure. Now is not the time to slash state revenues that lift up families who have been left out of prosperity and support vibrant communities.

With Inauguration Day just around the corner, none of us know exactly what lies ahead. But what we do know is that we need to continue to be formidable advocates for the Michigan workers, families and children who are struggling on a daily basis to make ends meet. That is what the League has committed to doing since it was established back in 1912 and we’re not going to stop now. We hope our state lawmakers are committed to doing the same for their constituents.