LANSING – A jobs development proposal outlined by President Barack Obama could help the state propose a budget that does not need layoffs of police officers, firefighters and teachers, Gov, Jennifer Granholm said Wednesday.
Speaking to reporters at a press conference on energy manufacturing grants Granholm did not offer details of how her budget for 2010-11 would be structured to avoid possible layoffs for those workers, but she was hopeful it could be so structured if the jobs plan “takes root in Congress.”
In addition, Granholm said that the 20 percent budget cuts state departments have been preparing for in the upcoming budget is a “worst-case scenario.”
Obama unveiled his jobs proposal on Tuesday in Washington. The address focused on several areas to boost employment, including a series of tax breaks aimed at small businesses to help encourage them to hire more workers, and putting more funds into infrastructure construction and improving energy efficiency.
Paying for the proposal would come in part by using funds for the federal troubled asset relief program that have not been allocated, Obama said.
While the proposal does not specifically call for efforts to help local governments keep their safety personnel employed or help school districts keep teachers, Granholm said she has been pushing heavily for the federal government to take steps to help preserve those jobs.
She said she was in Washington last week lobbying for the administration and Congress to take that action.
And while she denied charges made by Lansing Mayor Virg Bernero that the state was not using federal stimulus funds properly, she agreed that cities should have stimulus funds sent directly to them to help keep police officers and firefighters. And she said she would add to that list teachers.
If the state can avoid a budget situation in the next fiscal year that would prevent layoffs in those areas alone it would be tremendous boost for the state, Granholm said.
In terms of the budget, if 20 percent cuts is a worst-case scenario, Granholm did not say what level of cuts she might seek in the budget that will be presented in February. She has previously said more cuts will be needed in the budget in part because of the drop in federal stimulus funds.
Asked about the current budget and the ongoing effort to restore some of the budget cuts through selected tax increases, Granholm said any questions on how that was proceeding had to be addressed to Senate Republicans. If that caucus decides to move on tax proposals she and House Democrats have offered, then the state could effect some changes, but the timeframe to do so is short, she said.
Granholm also said Detroit Public Schools test scores showed the city’s schools is in the midst of an “academic emergency,” and she hoped some of the federal Race to the Top bills would allow the financial emergency manager there Robert Bobb greater ability to address those issues.
And she also denied charges that have arisen following the attempted prison break on Tuesday in Eaton County that the Department of Corrections is making decisions based on budgetary issues. The department always makes decisions based on safety issues, she said.
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