Cut state government work force

The Detroit News is highlighting ideas from various groups to promote discussion on reform, restructuring government and the economy.

Cut state government work force

Idea 24: Reduce the state employee work force 5 percent to 10 percent.

Why: In March 2009, the state employed more than 52,700 classified and unclassified workers. The state classified payroll for Fiscal Year 2007-08 was $4.73 billion. Michigan has a smaller economy today than it had in past decades and cannot support the same level of state spending it once did. The state's budget must be right-sized to reflect declining revenues, and structural reforms are needed to reflect economic realities and to provide a sound fiscal path for the future. To right-size government spending, the state must cut spending for staff and programs and make fundamental structural budget reforms.

Benefit: Reducing Michigan's state employee work force by 5-10 percent could save the state between $236 million to $473 million annually.

How: The state employee work force could be reduced through the state budget process through either annual or supplemental budget bills. This might also require negotiations through the collective bargaining process.

Obstacles: State employee unions such as the Michigan State Employees Association, Michigan Corrections Organization, Michigan Public Employees SEIU Local 517M, Michigan State Police Troopers Association, Michigan Council 25 AFSCME, UAW Local 6000, Michigan AFL-CIO and others. They have argued that the state employee work force has already been cut enough. State elected officials have been reluctant to reduce the number of state workers.

Source: Business Leaders for Michigan

and Anderson Economic Group