Published February 7, 2007

The state: Lawmakers let budget slide for years; now state must choose

Gov. Jennifer Granholm is never better than in front of an audience pitching Michigan; even an audience as full of political skeptics as the Michigan Legislature last night.

In her State of the State address, the governor again looked for the positives, the opportunities in Michigan's economic and budgetary struggles. We appreciate the pep talk.

Now the tone has to harden; it has to focus on the bitter choices. Michigan has to make public services fit public revenues, both to address the current $800 million deficit and an even larger one projected for next year.

It is more inspiring to speak of educational promises and helping children. It is more necessary to talk about shrinking the Department of Corrections, determining which citizens and businesses will pay what in taxes and prioritizing state spending.

For the first time in her administration, the governor is seriously pushing prison reform. She has to. Corrections is spending about $2 billion to hold 50,000 people.

One independent report says that if Michigan cuts its prison population by 10,000, it could save $500 million. To make up for time lost, Granholm should push hard to do three things here:

• Reduce the prison population through paroles and, if necessary, commutations.

• Take some of the savings that result and re-invest heavily in prisoner re-entry and monitoring programs.

• Take the rest of the savings and invest in Michigan's education and health.

The third point is what 2007 must be all about, inside the State Capitol and out: How will Michigan invest in itself, in its children, for a better future?

Replacing the Single Business Tax? Discuss in the context of how it will affect education and health investments.

Tinkering with the sales tax? Discuss with schools, colleges and hospitals in mind.

Cutting government? Education and health must be the priorities for what money is available.

For five years, Michigan leaders have papered over a continuing, structural deficit: drawing down reserves, diverting money meant for local government to the state, adding fees and cutting.

And still, Michigan cannot meet its commitments.

Granholm offered some new ideas and some old ideas for addressing the state's challenges, chief among them its budget shortfall. She offered inspiring words. She issued a challenge to the Legislature - and the state - to advance rather than retreat.

And now we'll see whether she and lawmakers will get this most difficult job done.

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