LANSING -- This was a year when it became perfectly clear to anybody watching closely that the political system is a mess in Michigan. And worse, that no one in power is trying to fix it.
This was a year of economic crisis in which the Democratic governor, freshly re-elected by a historic landslide, seemed unable -- and often unwilling -- to lead. It was a year in which Republicans in the Legislature offered little that was constructive and seemed interested only in making the Democrats look bad.
It was a year of a deepening economic crisis and a "one-state recession" in which, by year's end, Michigan's 7.4 percent unemployment rate was a full point ahead of the two next-worst states, Alaska and Mississippi. It was a year when the state lost an estimated 30,500 people, according to U.S. Census Bureau estimates.
And it was also a year when the state Legislature did little except fight over balancing the state budget.
During that fight, Michigan's lawmakers gave the voters plenty of reasons to regard them with contempt. (Polls in fact showed that 83 percent of the voters felt the Legislature was doing a bad job.)
Hard decisions were needed to balance the fiscal 2007 budget last May. Instead, the lawmakers sold off $900 million in future tobacco settlement money for a mere $400 million.
That meant, essentially, stealing half a billion dollars from Michigan's future. But when you are term-limited and will be long gone when the chickens come home to roost -- why worry?
Six years from now, thanks to term limits, every member of the state House will be gone, barred from further service. Three years from now, all but seven state senators are certain to be gone, too.
This year, they dithered. On Sept. 30, the clock was ticking again, on the way to a legally required shutdown of state government at midnight. Once again, the lawmakers had failed to agree upon a budget, this time for fiscal 2008.
Finally, that very day, they had an idea.
They would extend the sales tax to ... the bronzing of baby shoes. Also fortune tellers, ski lift operators, and phrenologists, those people who seek wisdom by examining the bumps on your head.
In other words, everyone not protected by a powerful lobbyist. The Legislature combined that with a small increase in the state income tax, and narrowly passed that package just hours after the shutdown started. And then the business community went wild.
Turns out they didn't want the sales tax extended to any services, partly because it would have set a precedent.
Next time the bell tolled, they feared the hungry lawmakers might be coming to tax their services. Hurriedly, the service tax was repealed. Unfortunately, this blew a new $750 million hole in the state budget. Now where to get that money?
A few months before, they had passed a new comprehensive Michigan Business Tax. The lawmakers were proud of their work on that tax, which goes into effect Tuesday. The governor said it would be a real plus that businesses thinking of coming to Michigan would finally know what their tax rates would be.
So then they raised them by $750 million.
The smarter thing, said Charlie Ballard, a Michigan State University economics professor, would have been to go back and raise the state income tax rate from 4.35 to 4.9 percent. But the lawmakers feared the wrath of the voters, and more recall attempts.
So they didn't do that.
There were a few encouraging signs. Both houses seemed finally serious about passing bills to protect the Great Lakes.
The new Michigan Business Tax is, nearly all agreed, an improvement on the old Single Business Tax. That is mainly because the old tax penalized employers who hired new workers.
Next week, the Legislature comes back for another session. Soon, they will get the first official revenue estimates and find out if the budget they finally passed is actually producing enough revenue to balance the books. (Early indications are that it may not be.)
If not, it will be up to them to raise more revenue and/or find cuts everyone can agree on. If (when) they fail to do that, it will be up to Gov. Jennifer Granholm to make cuts by executive order.
What are the chances the lawmakers will be better this year?
Sadly, if history is any indication, it may be even harder to get things done in 2008. Michigan's entire 110-person House of Representatives is up for election in November.
Forty-four are term-limited and can't come back. Republicans, who are now in a 58-52 minority, view taking back the House as their top priority. Do you think anything will happen in the Legislature this year that is not full of political overtones?
You know the answer. But if you don't, there is a large bridge on I-75 near Zilwaukee that you just might want to buy.
Happy New Year, everyone.
Contact Jack Lessenberry at Bucca@aol.com or write to him at 189 Manoogian Hall, Wayne State University, Detroit, MI, 48202.
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