LANSING ? Michigan House Democrats huddled for about five hours Wednesday, receiving a detailed update about where the budget stands, how much revenue certain tax increases could raise and discussing their options, but caucus leaders did not present a concrete plan.
Meeting at the Radisson Hotel Lansing behind closed doors, sources, speaking on condition of anonymity, said Democratic leadership sought to assess the caucus’ comfort level with spending cuts and offered three possible revenue-increasing scenarios. These sources said the revenue proposals presented were not a plan, or even a suggestion, but were offered more to show members how much revenue could be raised.
One scenario was applying the 6 percent sales tax to some services. Another was raising the income tax. A third was the closing of loopholes and exemptions in the tax code. Leadership offered no indication of what method it preferred.
After the full caucus met, it then split up into groups of about eight to 10 members where each discussed its comfort level with new revenue and spending cuts. Sources described some of the groups as skeptical about new revenue.
Democrats heard details of the plan behind closed doors in a hotel meeting room.
At times, staff was allowed into the meeting. At one point, House Speaker Andy Dillon (D-Redford Township) and Rep. John Espinoza (D-Croswell) stepped out into the lobby to chat.
There had been some sense that Dillon would offer a concrete plan to the caucus in advance of Thursday’s scheduled 12-hour negotiating meeting with Governor Jennifer Granholm and Senate Republicans.
House Republican spokesperson Bill Nowling criticized Democrats for waiting to hold such a meeting until just weeks before the October 1 deadline to enact a 2009-10 fiscal year budget.
“Not to toot our own horn, but House Republicans have had a balanced budget proposal on the table since July 22, which was 42 days ago,” he said. “The House GOP plan would balance the budget without raising taxes and sets aside more than $400 million in federal stimulus funds for roads and jobs programs.”
Granholm has summoned top legislative leaders for the meeting and has asked four leaders from the business and political worlds to join them – Bill Rustem, president of Public Sector Consultants, Matt Cullen, a former General Motors Corporation executive now heading up Rock Enterprises, an umbrella of entities run by Quicken Loans founder Dan Gilbert; F. Thomas Lewand, a Detroit attorney and powerbroker who was chief of staff to Governor James Blanchard; and former House Speaker Paul Hillegonds, now with DTE Energy.
Senate Majority Leader Mike Bishop (R-Rochester) sent Ms. Granholm a letter Tuesday, obtained by Gongwer News Service, reiterating his spokesperson’s comments on Monday that the four men not participate in negotiations as mediators.
“I look forward to receiving their information,” he wrote. “After these presentations and any ensuing discussion, however, I expect that our guests will be excused as we need to discuss resolution of the budget. As leaders of state government, the constitution requires us – not unelected outsiders – to agree upon, and enact through legislation, a balanced budget.”
Bishop also said he expected Dillon would present a budget proposal on behalf of House Democrats. He requested a break from negotiations at that point to review the plan with the possibility of reconvening later in the day.
“Please be aware, however, that last-minute efforts to infuse discussions with new ideas that have not been vetted or prepared for legislative action are not productive,” he said.
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