CHICAGO — Michigan Gov. Rick Snyder Wednesday night defended the state’s expansion of its emergency management law for troubled local governments and urged legislators to address a steep road-funding shortfall and support a newly created educational authority that will take over the state’s worst schools.
Snyder was set to follow his second state of the state address with an online town hall meeting Thursday. The speech came as Michigan enjoys its most positive economic news in years. The jobless rate dropped to 9.3% in December from 11.1% last January, the lowest rate in three years.
Officials also announced that the state will see $633 million more revenue than expected in 2012, and that last year’s job growth was the strongest in a decade.
Snyder touted the gains, saying the 2012 budget sets aside $255 million for the rainy-day fund, the first deposit since 2004. He will present his 2013 budget Feb. 9. The Republican governor unveiled no new programs and said the legislative work of 2012 should concetrate on several major policy changes introduced last year.
“This year is about finishing the work left over from 2011, tackling unaddressed challenges and making this year about good government,” Snyder said. “We are being bold in reinventing Michigan, but it requires setting high expectations.”
Snyder defended the new emergency management law, which was significantly broadened last year and now faces a threat from a group of opponents nearing their goal of asking voters whether they want to repeal the new law.
“Think about a situation where employees are not going to get their paychecks, suppliers are not getting paid, bond payments are being missed, or financial statements cannot be completed,” Snyder said. “These are critical problems.”
The state currently has seven cities and school districts under emergency management. Detroit is under review for possible state takeover. “A number of our cities and schools are suffering major financial distress,” said Snyder. “This problem is not a new one, but it’s an important topic we should fully address in 2012.”
Echoing recent comments from state Treasurer Andy Dillon, Snyder said the common feature of all local governments under financial management is a sharp population decline.
“Tonight I want any jurisdiction that’s struggling with its finances to know we are committed at the state level to be a supportive partner to help you resolve your challenges,” he said. Snyder then introduced Detroit Mayor Dave Bing to loud applause.
“Detroit has so many exciting developments going on, and resolving the city’s financial challenges would clear a path to a bright future,” the governor said.
Other priorities include advancing a $4 billion, partly bond-financed bridge to Canada that is one of the Legislature’s most controversial debates. A package of bills that stalled in the Senate last year would have created a new authority to issue toll-backed bonds and allowed the state to enter a public-private partnership.
Snyder also urged lawmakers to address a $1.4 billion shortfall in the state’s roads and bridges budget. “Let’s solve this problem now,” he said, adding that he would soon present a series of measures to change the road funding formula.
Snyder touted last year’s sweeping overhaul of the state’s tax structure that eliminated the “job-killing” Michigan Business Tax and created new taxes on retirement and corporate income, and said lawmakers should now eliminate the personal property tax. Most local governments are opposed to that move as it would mean the end of an important revenue stream for many communities.
