Granholm budget plan shortchanges agriculture; short on reforms
Contact: Tonia Ritter, (800) 292-2680, ext. 2048 or Jill Corrin, ext. 6585
LANSING, Feb. 12, 2010 - In much the same fashion as the State of the State address in which the Governor glossed over agriculture, Gov. Jennifer Granholm's fiscal year 2011 budget plan also misses the mark by not recommending deep enough reforms, favoring instead to return to the tax trough and make cuts to fundamental programs of the Michigan Department of Agriculture (MDA) that help grow Michigan's economy while doing little to curb spending in the state's costliest departments.
"The Governor made some strides toward reform in her budget plan but Michigan demands more," said Wayne H. Wood, president of the Michigan Farm Bureau (MFB), the state's largest general farm organization.
"Steadily chipping away at departments like MDA and, in the process, setting back business sectors that are actually aiding in Michigan's economic recovery is not the answer. Neither is immediately turning to taxes," said Wood.
"As Michigan Farm Bureau members clearly stated in adopting organizational policy, Michigan must first reform where possible; this includes prioritizing spending on corrections, human services and education - the most expensive chunk of the state's general fund - and resort to taxes as a last option," said Wood.
Michigan Department of Agriculture
On paper, the 4 percent proposed reduction in general fund/general purpose dollars from fiscal year 2010 to 2011 for MDA is about average compared to other state departments but the devil is in the details, said Wood.
Factoring in all fund sources beyond general fund/general purpose dollars, MDA's year-to-year reduction is on the high end compared to other state departments. More troubling are some of Granholm's specific budget recommendations within MDA, said Wood.
Granholm recommends a $150,000 reduction to the Right to Farm Program. This would include moving one MDA employee to the state Department of Natural Resources and Environment (DNRE).
"Reducing funding for the Right to Farm program doesn't make sense. The program is as much a benefit to neighbors of farms as farms themselves because it provides an outlet for citizens to resolve local disputes and ensure that farms are following proper operating procedures," said Wood.
"Moving staff from MDA to the DNRE makes even less sense. Where's the cost benefit? But more importantly, where's the rationale?" said Wood. "The Right to Farm program encompasses much more than environmental standards. Among other things, it also covers animal care, farm markets, and agritourism, and staffing belongs in the state department devoted to agriculture."
Another move that is baffling is Granholm's recommendation to shift the Michigan Agriculture Environmental Assurance Program (MAEAP) and its five employees to the Michigan State University Agricultural Experiment Station.
"MAEAP helps protect Michigan's natural resources and, at the same time, keep farms viable - two areas identified by the Governor herself as unique assets to Michigan, and this transfer essentially guts funding for this valuable program," said Wood.
"And while Farm Bureau is a strong proponent of the Agricultural Experiment Station, we don't believe the Experiment Station is the right place for MAEAP," said Wood. "For one, MAEAP isn't experimental; it's a program for applying proven science. Secondly, at the heart of MAEAP is an audit process to verify that farms indeed meet MAEAP's high standards for environmental compliance. We believe the Michigan Department of Agriculture is best positioned to serve as the third-party verifying agency."
Granholm's proposal to generate revenue through additional fees for dairy and migrant labor housing inspections also disappoints MFB because plans are currently under way to collect fees from farmers for these services in the current fiscal year.
"Farmers in good faith have already agreed to pony up and pay their fair share for these inspection services. The fees agreed to are comparable to those paid by farmers in other states so as not to put Michigan farmers at a competitive disadvantage. The Governor would be wise to first start collecting the agreed-upon fees before she suggests going back to the well and double-dipping," said Wood.
In addition, Granholm recommends reducing funding for the Agriculture Preservation Fund by $450,000; the Plant Health and Export Certification Program by $379,000, including the elimination of four employees; and agriculture development by another $27,300. All these programs are fundamental to agriculture's continued success as the state's second largest - and growing - industry and employer to nearly a quarter of the state's work force, said Wood.
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