Two statistical realities stand out when examining Michigan governance:
Converting these statistics into actual budget savings involves a combination of straightforward “eat your vegetables” cuts, and process innovations like privatization that generate savings through “second-order” incentive changes throughout the system.
Here are our Top 10 budget reform ideas:
1 |
Place new school employees into a defined-contribution, 401(k)-type pension plan, rather than a defined-benefit system. » www.mackinac.org/8089 |
2 |
Require school employees to pay the same amount to their health insurance benefits as federal employees in this state (27 percent). This could save around $500 million annually. » www.mackinac.org/14155 |
3 |
Require school districts to make a good faith effort to contract out transportation, food and custodial services. Conservative estimates place annual savings at $300 million. » www.mackinac.org/9012 |
4 |
End annual appropriations to the 21st Century Jobs Fund ($75 million was appropriated in current-year budget). » www.mackinac.org/7123 |
5 |
Eliminate state film production subsidies. (The Department of Treasury estimates these will cost $155 million this year.) » www.mackinac.org/10733 |
6 |
Privatize one or more state prisons. In addition to direct savings, “second-order” incentive changes throughout the system could generate more than $150 million annually, based on the other states’ experience. » www.mackinac.org/7083 |
7 |
Eliminate the restrictions on the number of charter schools that can be authorized by state universities. » www.mackinac.org/11462 |
8 |
Fund public universities primarily through a standard per-student grant or voucher, with a university’s research financed in a separate line item. » www.mackinac.org/7703 |
9 |
Devolve State Police road patrols to county sheriff departments. This nominally saves $65 million, but the resulting major MSP downsizing would save much more. » www.mackinac.org/5373 |
10 |
Repeal the state’s “prevailing wage” law, which prohibits awarding government construction contracts to the lowest bidder unless it pays above-market continued on other side wages. » www.mackinac.org/8907 |