If Michigan has a budget surplus, does that mean we are taxed too much, and should get a tax CUT?

[MR. Thumbs Up]

Last year when we were working on the budget, Michigan was in crisis mode. We had to eliminate a $1.5 billion deficit. But because we made the tough decisions necessary to structurally balance the budget, this year we have a surplus of about $457 million and we are able to make strategic investments for the future.

Today, I proposed my budget recommendation to the Legislature. And I want to know what you think.

Tonight at 6:30 I am holding an online town hall meeting to discuss the budget and answer your questions. To join in, all you have to do is go to *www.facebook.com/rickformichigan* [ http://www.twitter.com/onetoughnerd ] on Twitter using the hashtag #AskGovSnyder.

Here's a video where I discuss my budget recommendation:

Budget Rec Video [ http://www.youtube.com/watch?v=EXuTO8OQh...e=youtu.be ]

"Here are some of the Fiscal Year 2012-2013 budget highlights:

"*Schools

*I’m pleased *we are able to increase funding for K-12 education this year* [ http://www.youtube.com/watch?v=MaxBWnca7...tPsveTTblm ]. We are protecting the amount schools receive per student, and we are actually increasing funding by $200 million for schools that implement best practices and show student growth.

We will also help pay down long-term liabilities, which means schools will be able to keep more money in the classroom to educate students instead of paying for retirement legacy costs. *

**Higher Ed

*This year we are in a position to make a strategic investment by increasing funding for community colleges and universities by 3 percent. But in return for more state assistance, we will ask community colleges and universities to keep tuition rates low and implement best practices.

*Saving for the future

*When I took office, Michigan barely had enough money in the rainy day fund to run the state for 30 minutes. Last year, we made the first significant deposit in a decade. This year, I am proposing we *save an additional $130 million* [ http://www.youtube.com/watch?v=IPqUT8vis...QDHzn8Esgh ] so we can build up our reserves in case of an emergency.

Budget Stabilization Fund

*Roads and infrastructure

*Michigan’s infrastructure loses approximately $3 million of value a day, so I’ve asked lawmakers to allocate enough state funds needed to ensure Michigan gets our full share of federal matching dollars for roads, which will help the state pay for maintenance and improvement costs.

*Increased funding for public safety

*Michigan has 4 of the top 10 most dangerous cities in the U.S., which is why *I am proposing we increase funding for law enforcement* [ http://www.youtube.com/watch?v=MCfFn7JdQ...4VKNpZQW2G ], criminal justice reforms and programs to help our youths. I will address this issue in more detail in March.

*Helping local governments

*Many of our cities and townships across the state are struggling, which is why I am recommending the state increase the amount of revenue it shares with local units of government. I am also seeking a larger increase to the pool of grant money that is available to help municipalities that want to work together to save money.

For example, last year Grand Rapids, Lansing and Flint agreed to combine their income tax processing system. The state helped cover the one-time cost of setting up the new system, which will result in significant savings for years to come.

*Protecting the vulnerable

*Just as we did last year, the budget protects Medicaid provider reimbursement rates to ensure low-income residents have access to medical care. I am also asking lawmakers to extend dental programs and home heating assistance. For the first time, the state will also help cover autism treatment.

*Sustained funding for job and economic development programs

*In the past, many of our job and economic development efforts relied on one-time funding. We are bringing stability to the system by dedicating reliable funds for economic development and jobs programs.