State has nothing to gain & lots to lose by making more cuts to MDA
Leaders unite to defend Ag Dept., urge broad reform at first budget hearing
Contact: Matt Smego (800) 292-2680, ext. 2044
LANSING, March 4, 2010 - In hammering out the 2011 budget for the Michigan Department of Agriculture (MDA) legislators need to consider the crippling budget cuts MDA has repeatedly endured, sacrifices the department already has made -- and at what costs -- and the good faith the agriculture industry has shown in helping to pick up the tab for services that benefit all Michigan residents, not just farmers.
They'll then be able to conclude that MDA is operating on a shoestring budget as it is, and further cuts or schemes to generate additional revenue from the department will only hurt Michigan's economy and not even put a dent in the state's budget deficit. It'd be wiser to use MDA as a role model for how to reform other state departments that haven't made the same concessions.
These were just some of the points that agricultural leaders raised with legislators on Tuesday at a joint hearing of the Senate and House Agriculture Appropriations Subcommittee -- the first in a series of budget hearings that will continue next week.
To demonstrate the industry's unified concerns, the Michigan Farm Bureau (MFB) provided joint testimony with leaders from other sectors of Michigan's diverse agriculture industry, including the Michigan Agri-Business Association, Michigan Milk Producers Association (MMPA), Michigan Potato and Carrot Industry Commission, and GreenStone Farm Credit Services. Highlighted here are some of the main points raised.
Dwindling MDA budget
Over the last 10 years MDA's budget has been cut in half, from $62.6 million in 2000 to just $30 million today.
"To put this in perspective, MDA's total budget -- and I emphasize 'total' -- is less than one-third of the overtime paid for Michigan's Corrections Department," said MFB President Wayne H. Wood.
Full-time MDA staff over this period has dropped from 653 to 450 employees, with a 15 percent staff reduction over the last three years alone. Meanwhile, key divisions and programs within MDA have been completely eliminated including agriculture development, horse racing, and "Select Michigan" food labeling.
Impacts on food and the economy
While MDA and the agriculture industry have adjusted accordingly to make due with less, the budget cuts have come at a price. For instance, there are fewer inspectors for food safety and other programs resulting in delays of important services, as Ben Kudwa, executive director of the Michigan Potato and Carrot Industry Commission, explained.
Kudwa told subcommittee members how an outbreak of potato late blight, a devastating fungal crop disease, slipped through the inspection cracks. The result: $10 million worth of potatoes destined for food products was lost.
Contributions from the industry
Farmers have willingly stepped forward to help fill budget gaps in times of need to preserve vital MDA programs, according to MMPA President Ken Nobis who testified how Michigan's dairy farmers have invested more than $1 million over the last 40 years to help cover costs for food safety-related laboratory services provided by MDA.
Just last year during one of the worst dairy marketing years on record, Michigan dairy farmers agreed to pay an additional $100,000 out of their own pockets to help sustain critical MDA programming, said Nobis.
But Nobis and the other agricultural leaders testified there is only so much the industry can do and it's already been stretched thin. New or increased fees will only raise farmers' costs of doing business and put Michigan's agriculture industry at a competitive disadvantage.
As the leaders summarized, "agriculture is paying more to get less."
Broad reform
The Legislature needs to consider what's to be gained and lost by making more cuts to MDA, and according to the agricultural leaders "there's little to nothing to gain and a lot to lose."
"MDA currently represents .4 percent of the state's general fund/general purpose budget. Big picture, we're a blip on the radar and continuing to hack away at MDA is not going to solve Michigan's $1.7 billion budget deficit," said Wood. "The Legislature must make reforms to other state departments similar to what MDA has experienced over the last 10 years, and a good place to start would be to look at where most of our state's spending goes.
"An easy analysis shows that about 86 percent of the state's general fund/general purpose budget goes toward corrections, human service programs and higher education. It makes sense for the state to implement reforms there first and seek other options as a last resort."
So what's there to lose? One of Michigan's only growth sectors, the agricultural leaders said.
The agriculture industry, including the agri-food and agri-energy sectors and all the supporting industries, is a $71.3 billion industry in Michigan employing 25 percent of Michigan's work force. The agriculture economy has been expanding at a rate five times faster than the general economy.
"Why pull the rug out from under one of the few good things Michigan has going? That doesn't make any sense and is the last thing the Legislature should do," said Wood.
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For additional photos go to http://www.michfb.com/agrinotes/index/120
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