With plans starting for Michigan’s future following the beginning of the new legislative session and a budget proposal from Gov. John Engler expected on Thursday, some groups are voicing their concerns.
One of the concerned groups is the state chapter of the National Federation of Independent Business. In his State of the State address last week, Engler was vocal in his support of increasing the movement of e-business to Michigan.
Engler’s plans for encouraging the expansion of high-tech corporations include a lowering of the single-business tax for the companies.
While many businesses already benefit from the tax cuts, Charles Owens, Michigan director of the business federation worries it may not be the right move.
“My concern with tax cuts being targeted is that we would like to continue the governor’s excellent track record with small businesses,” Owens said. “Targeting the cuts leaves less money for all groups. We don’t want to suggest that we’re ungrateful - all in all, he’s been very supportive of small business.”
Susan Shafer, deputy press secretary for Engler, said Engler’s plans will benefit Michigan schools.
“Education has been the number one concern for this administration and will continue to be,” Shafer said.
While no definite numbers for the budget yet exist, Shafer estimates that any tax cuts for new business will not prove harmful to Michigan.
“While we hope to have a number of companies coming in, I don’t think the floodgates will open,” she said. “You have to remember, the single business tax is going to be phased out for all companies within 20 years.”
Democratic members of the Michigan Board of Education also have some concerns. The group hopes Michigan’s public schools can be improved dramatically, with help from enhancements in teacher certification and increased incentives for higher education. While they do approve of the focus on education the governor highlighted, group members say many more improvements can be made.
“I think that the Democrats applaud (Engler’s) emphasis on education,” said John Austin, who was recently elected to an eight-year term on the education board. “We want to make the education system as good as it needs to be.”
Also among the group’s concerns are school districts with failing academic standards as well as school buildings too old for use.
