MFB to Legislature: Support Senate version of Dept. of Agriculture budget; reject governor's plan for additional 3 percent cut
Contact: Tonia Ritter, (800) 292-2680, ext. 2048
LANSING, Aug. 27, 2010 - Budget targets for state departments will be determined soon, so Michigan Farm Bureau (MFB) members are urging legislators to get behind the Senate's budget proposal for the Michigan Department of Agriculture (MDA), and they're cautioning lawmakers against slicing off another 3 percent as Gov. Jennifer Granholm recently recommended.
The House and Senate are expected to convene with the governor's office in the next few weeks to set targets for each department budget. Targets represent recommended maximum allocations from the state's general fund. On Aug. 18, Granholm issued a plan to resolve Michigan's remaining $484 million budget deficit for 2010-11, in part, with 3 percent cuts across all state departments. These additional cuts would be on top of budget reductions Granholm recommended in her original budget proposal released in February.
Meanwhile, the House and Senate have yet to agree on a budget plan for MDA. MFB supports House Bill 5875 (S-1) as passed by the Senate in May. The bill is a Senate substitute for a House-originated MDA budget bill. The House did not concur with the Senate version, so differences between the two chambers will have to be reconciled in a conference committee before the bill can eventually go to Granholm for her signature.
While state budget targets and a governor's budget recommendations don't dictate what the House and Senate can ultimately adopt through legislation, going above budget targets generally puts legislation at risk of being vetoed by the governor, either in full or in part with line-item vetoes.
"Once budget targets are set, it will be next to impossible to adjust the general fund allocation for the MDA budget and guarantee that Michigan citizens and the state's agriculture industry have access to critical programs and services administered by MDA," said MFB State Governmental Affairs Department Manager Tonia Ritter of the budget target process in lieu of the Legislature not finalizing an MDA budget plan as of yet.
Granholm's 3-percent reduction plan presents a whole 'nother monster, said Ritter.
For MDA, the governor's newest proposal equates to an additional $850,000 reduction. This is on top of the $1.2 million reduction Granholm recommended earlier this year. Combined, the cuts would lead to an estimated 20 to 25 additional layoffs within MDA and threaten several programs including inspection services for migrant labor housing and dairy, fruit and vegetable crops/food products, as well as grain dealer security, Right to Farm, and the Michigan Agriculture Environmental Assurance Program.
"Cutting MDA's resources has negative impact to farmers and general citizens without addressing major structural deficit issues in Michigan's budget," said Ritter.
"Agriculture is the second-largest economic driver in Michigan with over $71.3 billion in economic activity and 1 million jobs," said Ritter. "Additional cuts will mean lost sales, limited ability to respond to plant and animal health diseases, fewer resources for food inspection, greater risks for farmers' in grain selling transactions, little or no resources for Right to Farm complaint response and conflict resolution, and a stalemate in highly successful farm environmental programs."
Ritter adds that MDA has already undergone massive budget and structural changes over the last several years and created efficiencies and downsized where possible, yet is able to protect citizens at a reasonable and "bargain" price of just 2 cents a day per Michigan citizen, or $8.46 per person annually.
"In just the past three years alone, the department has reduced its staffing by 83 employees, which equates to 15 percent of its entire work force," said Ritter. "MDA has eliminated entire divisions and consolidated services through cross-training among divisions.
"Six regional service offices have closed, the Select Michigan program has been 'moth-balled,' pet shop and riding stable inspections have been eliminated, and state support for county fairs and the U.P. State Fair is non-existent, among many other reductions in services."
In her original budget proposal, Granholm also called for additional fee increases for dairy and migrant labor housing inspections. But the House and Senate, in their proposed legislation, rejected the idea of replacing general fund money with increased fees for these services.
"Agriculture has stepped up and supported fees for programs that are vital to our industry; however, this is not a sound long-term strategy and we need to look at reforms within state government before additional revenues are suggested," said Ritter.
The Senate-passed version of HB 5875 is not without budget reductions either, but "overall is the best option," said Ritter.
"At this time it is unclear what version, whether it be the House budget plan, the Senate's or the governor's, that the Legislature will approve," said Ritter. "But the Senate-passed version is the best for agriculture and will create the least disruption to the economic vitality of the state's agriculture industry. Legislators must also not forget that MDA is the only agency in state government that makes the protection of Michigan's entire food supply system its No. 1 priority."
Learn more about how MDA protects average citizens in their everyday lives by watching a short YouTube video, "For 2 cents A Day Michigan Department of Agriculture Protects You Morning, Noon and Night". More comprehensive information is available online regarding MFB's positions on government streamlining and the organization's Common Sense Solutions to Fix Michigan initiative.
-30-
