DETROIT, Mich., May 5, 2009 – Detroit Renaissance, a private, non-profit leadership organization dedicated to accelerating the region’s economic growth, renewed its call today on the Michigan legislature and Governor Jennifer Granholm to more aggressively cut spending and pass long term structural reforms to right-size Michigan’s budget. The organization was responding to the projected use of nearly $1 billion in one-time federal stimulus funds to balance the budget after reviewing Executive Order 2009-22.
“As we face yet another massive deficit, again a one-time fix has been proposed that postpones the inevitable. By not acting in a fiscally responsible manner and tackling our huge structural budget deficit, our state’s reputation and business climate continue to deteriorate,” said Doug Rothwell, president and CEO of Detroit Renaissance. “For over a year the business community has proposed solutions and pleaded with our state leaders to adopt strong spending reforms. We cannot afford to wait any longer.”
“We recognize that many of the 187 individual cuts included in the Governor’s Executive Order were difficult,” Rothwell said. “But, we keep avoiding making the basic structural changes necessary to prevent future fiscal instability—reducing total spending to match revenues. Nearly all of the Executive Order’s cuts are one-time reductions; they are responding to another deficit that wasn’t forecasted; and virtually no significant budget reforms have been adopted to prevent another fiscal calamity next year.” Renaissance has previously advocated for revenue forecasting, multi-year budgeting, Corrections spending, employee benefits, teacher retirement spending and health care reforms. More information can be found at: www.detroitrenaissance.com/reports.
About Detroit Renaissance:
Detroit Renaissance provides leadership to accelerate the economic transformation of Detroit and Southeast Michigan. Renaissance accomplishes this work through serving as a catalyst to develop growth strategies, advocating for those strategies and championing specific initiatives that accelerate growth. A 501(c)(3) organization that was formed in 1970, Detroit Renaissance is composed exclusively of the chief executive officers of the region’s most significant employers and universities that generates over $800 Billion in annual revenue, provides nearly 300,000 jobs and serves over 130,000 students in Michigan. For more information, visit www.detroitrenaissance.com.
