Tuesday, July 28, 2020

Governor Whitmer Covid Update 07/28/2020-Budgeting Issues

A few ideas on next steps with COVID. Continued discussion on outbreaks. We haven't had an update in a while so its important to stay on top of issues as they occur. Lots of discussion on budget shortfall and the shortfall for the current fiscal year. More budget shortfalls for next year. They are seeking Federal help. I suspect we will get some Federal help but will also need to think about attracting investment, manufacturing, and increased tax revenue to the state through pro-growth fiscal policies.

Part of the problem we face is that we will have to lay off others and cut into budgets like maybe education and other places. That could create some legal problems if there are rights to education and other issues. To me children are one of the most important assets and should be priority. Yet there are so many other things we need and are likely to fight about them. 

One issue is that we didn't think fiscally sound for decades. We don't think about these things when we have money. We don't invest well in the future and perhaps governments should think about building in larger cushions and rain day funds in the future. Thus, government will have to think and make decisions about when money is used what is the long-term revenue return of that money. 

Small business will be part of growth in the U.S. Michigan has an opportunity to be very business oriented and encourage people to start and run businesses through innovative legislation. That includes low interest loans, coordinated government action, regulation review, streamlining processes, encourage foreign investment, and redevelop our society. 

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