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Liberty and Justice for All

2007-09-30


Government Shutdown Looms in Michigan

Governor Granholm, claiming the Michigan Legislature has not acted on her budget in seven months, is left with little choice but to impose cutbacks, with an executive directive this past Thursday to members of the Cabinet who manage the departments of state government, instructing them to begin taking the steps necessary to shut down all non-essential state government operations at midnight this Sunday, September 30, when the new fiscal year begins, unless an agreement can be reached. 35,000 state workers have been told not to report to work on Monday and the rush was on to renew licenses and buy booze by Michigan residents.

The state budget is in crisis and without a balanced budget in place, the Constitution prohibits state government operations and while negotiations are underway with the state Legislature for a solution, state workers are being placed on a temporary layoff. If an agreement cannot be reached, there will be massive cuts to public safety, health care, and education - including, but not limited to - courts, civil rights, lottery and gaming, community health, corrections, education, Secretary of State, and the Treasury.

It's reported that lawmakers and Granholm are struggling to close a $1.75 billion gap in the state budget.

What does this mean to Michiganders? You guessed it - increased income taxes and sales tax - in addition to reforming public employee health coverage, and... state government reforms. (We'll wait and see on the latter.)  

In a state already economically depressed, with an exorbitant cigarette tax and already high sales tax, this news does not bode well from a government who endorses MSG-laden fast food and pharmaceuticals, while discriminating on smokers' drug of choice - in the guise of public health concerns - yet knowing the nation's #1 health danger is obesity.   

And I guess this explains the 6 month delay on 2006 income tax refunds... Will Granholm and the Legislature please speed up this agreement so my hubby can FINALLY get his refund? Seems we'll need it to pay the tax hikes.

Gina Weiss

Advances in financial markets are often interrupted by powerful and sudden setbacks or forward lurches. What is it about investment psychology, and the structure of financial markets, that causes this? How should we react to short term gyrations that can excite or frighten? And what is the role of government regulation in stabilizing financial markets?
Crashes, Booms, Panics and Government Regulation



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