Resolution would require legislators to spend within state’s means

LANSING—Senators Buzz Thomas (D-Detroit) and Mickey Switalski (D-Roseville) introduced Senate Joint Resolution S in the State Senate today that would amend the Michigan Constitution to institute a “Pay-As-You-Go” policy in the Michigan Legislature. Through Pay-Go legislation, any bill introduced that would increase costs or reduce revenues to the state would be required to also identify a source as to where that money comes from.

“I have previously worked in the Legislature to ensure that we promote financial literacy to our kids, and in essence I’m now trying to do the same for state government,” said Sen. Switalski. “If we want to eliminate the state’s structural budget deficit, not spending money we don’t have seems like a good place to start.”

By requiring legislators to identify a funding source for any legislation they introduce that would increase costs or lower revenues to the state, the state would have to adhere strictly to maintaining a balanced budget and stop financially overextending itself. As a variety of government reforms continue to be debated in Lansing, Senators Switalski and Thomas hope that their Pay-Go proposal is given thorough consideration. This policy has already proven effective at ending excessive government spending both at the federal and state level. President Obama proposed reinstituting it at the national level in his State of the Union address last week, and Governor Granholm also has cited it as a necessary reform for Michigan government.

“Just like families throughout the state who have to be careful with every dollar, we should not be implementing projects and programs we have no funds to support,” said Senator Thomas. “If enacted, this legislation would bring some accountability back to the Capitol and serve as a first step towards reducing our state’s large budget deficit.”

Senators Thomas and Switalski both gave statements during today’s session on the need to pass their Pay-Go resolution, and videos of their remarks can be seen at the links below.

View Senator Thomas’ statement at: http://www.youtube.com/watch?v=PjFNB6MpXqg&feature=channel

View Senator Switalski’s statement at: http://www.youtube.com/watch?v=A9PBOVx20bk&feature=channel