Budg·et backs politicians agaims
Con ider
Dipping Into
'r iny day
fund'
By st phen Dravis
Capital News Sevic«
LANS G .. State officials
will have to make. some tough
political choices in this election
year to eep state government
out of the red, a Lansing con
sulting firm says.
No Lansing official are
speculating that higher taxes
could be one of those choices.
The practical options in
clude making massive budget
cuts and dipping into the
Budget Stabilization Fund
often called the "rainy day
fund," said Robert Kleine,
senior economist for Public
Sector Consultants.
"The size of the problem is
such that, it can't be ignored
until after the election," Kleine
said.
Lower than expected
revenues from the state's Single
Business Tax are mo tly to
blame for the potential deflict,
which could teach $200 million
if action isn't taken, he said,
The director of the Michigan
office of revenue nd tax
analysts agreed that the busi
ness tax is running behind
projected revenues.
Bur ER revenues are
running ahead of schedule, said
Douglas C. Drake.
Attorney General:
'Inmates abuse
righ 0 mtorrnatlon'
,S HoU"er
Qzpitlll Ne_ws Service
LANSING - Prisoners in
Michigan's jails are using the
state Freedom of Information'
Act more than any other group,
in wh Attorney GeDeral Frank
Kelley calls a "silly abuse" of
the 18 .
"The pdso , rs play a game
with us; they think it's a big
j e," said Kelley, who would
support limitations being placed
on the prisoners' use of the
Freedom of Information Act
(FOIA).
" Incty-nine percent of the
time it never leads anyplace,"
Kelley said in an interview.
But the inconvenience that
pri oners' reque ts' put on a
gover ment agency is not
enough to limit access to
government information, said
HawardSimon, executive direc
toe of the Michigan Olapter of
the American Civil Uberties
Union.
"I think that the attorney
general would hav e to show why
the rights of any citizen should
be restricted," Simon said
He added that prisoners
could ibly need information
to ppeal their case. '
The prisoners most often re
t access to their files, said
Melooy A.PI Wallace, litigation
coordinator for the Department
of Corrections. .
The department receives 95
percent of their requests from ,
prisoners, said Sergio Cacciani,
the Freedom of Information
coordinator for the agency.
For the first three'months of
thi year, the Department of cor-
. .
rections received 11.549 re
quests for information under the
act. Of those requests, 11,273
were made by prisoaers, Cac
ciani said
Last year, Cacciani said at
least 33,976 requests were
made, but be estimates the true
total is closer to 36,000.
Most departments do not
keep records of the number of
requests they receive and from
whom, said Barbara Brown of
the public information and
opinions unit of the Attorney
General's office.
Even the Department of Cor
rections did not begin to keep
records of the number of
prisone who make FOIA re
quests until October, Bro n
said ,
If a request is not answered
within five days, or ,15 if the
department gets an extension,
the per501l who requested the in
formation can sue the depart
men.
Brown said in same curreat
cases individual prisoners are
litigating up to eight freedom of
information requests.
The Department 'of Correc
tions i involved with about 40
to 50 Freedom of InfOrmabOll
Ad lawsuits every year, Wal-.
lace said
She said that until a change in
the act two years ago, the depart
ment was required to give
priso e a waiver in charges for
documents up to $20.
S he said the change was help
ful in cutting down on the cost
of prisoners' FOIA requests, but
the agency would support fur
ther restrictions on pri oner
ingtheact
In fact, Budget Director
Shelby Solomon told a House
Senate conference committee
Thursday that state revenues
will be $35.7 million higher than
original projections.
"We feel good about the fact
that the revenue picture is
stable," said Solomon, director
of the Department of Manage
ment and Budget.
The director of the Senate
FJSCal Agency disagrees.
There has been a slight
downturn in revenues projected
for this year, said Douglas B.
Roberts.
Roberts said the Single 'Busi
ness Tax is partly to blame. The·
Senate FJSCal Agency has found
that the tax has generated about
$63 million less revenue than ex
pected.
IN THE PAST, the
Blanchard administration has
accused Roberts' agency of dis
torting figures to support the
views of the leadership of the
Republican-controlled Senate.
Kleine said the deficit will be
much greater than anyone in
government is predicting.
The Single Business Tax is
running $100 million behind fast
year's total and the Department
'of Management and Budget
predict d a $50 .
inere
, Klei e said he d
with Drake's asse ion that
other r enue source will make
up for ortfalls in th business
tax coll ctions.
"Of urse, he (Dr e) has to
say th ," Kleine sa d. I
don't see an� offs tting in
creases in any other laces,"
Solo on told the nference
commi ee there is problem
with t . yea(� budg t, but that
problem is overspe ding, not
under ding.
To emed� that problem,
Solomon is recomm nding the
Legisla ure make a ross-the
board cuts of 3.5 per ent in this
year's budget and e-allocate
funds t areas such social ser
vices and correctio
THE EFFECT 0 that cut
would be more se e than it
appears because wi just four
months left in the
3.5 percent deer
expenditures woul
into a 10.5 percent ut in the
remainder oflhe yea .
Kleine's suggesti n that the
state ay have t use the
Budget Stabilizatio fund w
not supported by So mono
Both Solomon nd Drake
said their departme t isn't con-
Supreme Cou.r
PAGE THREE
sidering using the "r iny day
fund."
The lost revenue from th
Single Business Tax could be
the result of poorer perfor
mance in the manufacturing
sector of the state's economy,
Kl ine aid.
Some Lansing, officials ha�
- performance of the
auto industry is especially to
blame.
The Single Business Tax is a
"modifi d value added tax," he
said.
Under value added taxes, a
business is taxed on the revenue'
it receives from selling a
product minus the money it
pays other businesses for goods
and services.
Michigan's value added tax
is modified because it allows a
numbdr of exceptions that
lower a firm's tax burden, he
said.
Kleine said ·his company
hasn't published its ysis yet,
but will include it as of its
next monthy revenue r port.
Public Secto Cons tants is
a private consulting mn that
does research and pub· hes ad
vocac� reports, Kle· e said.
THe ompany sped lize in
econo ic, tax and alth- re
lated issues.
ruling on Che klane .
By Talala Morse mented," Granzotto id, perso I views on the issue
G ·t I MS· Michigan Atto y General might be differenl .
ap. a ews emc« . 1
. Frank Kelley said e chances "A awyer doesn't always
LANSING --: Th� s�-y� bat- are - pretty good' th state wi1l have t agree with the position
tle over th� consti�utionabty of win tho case, and th decision is he def ds," Kelley said
checklan� IS drawing to a close, due" any day." ," It rs an incredibly stupi d
but even If the state of Michigan The decision will come after idea" Granzottos said "It is
wins the c�� no .ro�dblocks nearly six years of ate. Gov. basi�iy a publicity tool."
may � 5ee!l.ln .Mic�gan, . an James Blanchard riginally Granzotto said the check
Amencan Civil liberties Union proposed sobriety c k lanes in lanes were inefficienl
lawyer says. 1984, but backed off because of "It takes 15 men to do them,"
Mark Granzotto, who opposition from the CW and Kelley said " And if it is raining
'pr�nted the ACL1.1s case to the Michigan Sherif s Associa- or snowing, they don't use
the U.S. Sup-eme Court on Feb. tion. them,"
27� said � case w filed 'on In 1986, BI Kelley compared the
two JXeouscs: The check lanes his plan foetbe roa<l>loCks to metal detectors
,:iolated the Mi�gan Constitu- his State of the S e address. aiIports and raodom blood test-
b� � the United States Con- The executive order as imple- ing.
�tttuti,?n. T�e. U.S. Supreme mented May 18, 1986 in "We bad to open our brief
Co� IS deciding only on the Saginaw County, pite 0"': cases before we went into the
basis of the fourth Amendment, position from . c legis- highest court in the land," Kel-
which prev.ents unlawful sear- lators and the ACLU. . ley said
� and �IZ� .. The ACL Y filed s ·t May 16, Granzotto said if the ACLU
. The Michig� Consbtuti� 1986 to try to pr vent the loses the case, the restriction on
IS much" more striDge� � this roa<l>locks on the gr . they Fourth Amendment rights may
manner, Grazotto said, The were unlawful sear. begin to be "scary."
courts �ere have already ruled , The check lane s pped 126, "There are significant
on that Issue." motorists and resul tin two ramifications to this case"
The Wayne County Circuit arrests. Forty other s es 'have Granzotto said "A pedestri�
,Court ruled in favor of the used checkpoints 30 states road bloc may be next."
ACLU. The state appealed to the filed briefs in su rt of the About 23 000 deaths and
Michigan Court of Appeals, check lanes, when th case was 25,000 injuri� occur nationally
who upheld the lower court's heard before the U.S. Supreme from drunken driving accidents.
decision. The. Michig an Court, Kelley said .. In Michigan, about 800 people
Supreme Court denied the case. "No one the consbtutiOD- -die every year in drinking-re-
"I have also heard that some al right to drive," Kelley aid" It lated accidents.
legislators may try to block is a privilege, and it is already
fuodiDg for the check lanes if limited. "
they do manage to get it impl� But Kellev hinted that hi