Rep. Bill Caul (R-Mt. Pleasant)

"I felt the process was extremely productive.  I believe this process offers legislators an opportunity to unroll budgets, ask the tough questions about results and identify priorities that we can defend."

Rep. Jerry Kooiman (R-Grand Rapids)
Speaker Pro Tempore

“I want to thank the Michigan Association of REALTORS for stepping up to the plate by helping underwrite part of the cost of implementing a new budgeting process for the legislature.  I believe the process we used in the House this year has the potential for literally transforming the annual budgeting process in Michigan.  I am hopeful that in the coming years the Senate will join the House in our efforts to make budgeting for outcomes the standard procedure.

By budgeting for outcomes the House was able to establish priorities for funding what was most important to the residents of Michigan, and reducing or eliminating programs that were not providing the results intended.  We were, for the first time in my five years in the legislature, able to balance the budget while living within our means.  While I was disappointed that the final budget increased spending by $240 million over the House-passed budget, I am pleased that we did so without fee or tax increases.

I am proud that members of the appropriations committee asked the right questions, and the best ideas in the budget came out of the Price of Government process.  While House proposals such as the new funding formula for higher education, welfare reform, and Medicaid reform, were not completely included in the final budget they did begin a very important debate on those topics, which will result in significant long-term policy changes in those areas. Again, thanks to the REALTORS for your involvement and support in bringing fiscal responsibility to Michigan government.  The biggest change needed in coming years will need to be in aligning subcommittees with the nine priority areas for funding.”

Rep. Gretchen Whitmer (D-East Lansing)
Minority Vice Chair Appropriations

“The POG had great promise, though I think it failed to deliver as politics continues to trump good policy making.   If the implementation of the philosophy had been wholesale and not politically piecemeal it would have been a huge benefit to the state. While the Governor was the first to use the POG, the legislature was split on whether to use it. The one chamber that did insist on reinventing the wheel - - which was folly in light of the limited expertise of term limited legislators and limited time in which to finalize the state budget. I would favor using the POG, but only if we were true to the philosophy espoused in the book.  Openness, setting priorities that trump petty partisanship and achieving long term goals are critical aspects to the philosophy that we must not ignore if we are to continue POG.”

Rep. Goeff Hansen (R-Hart)

“It was time to change the status quo.  In past budget cycles, budget bills were constructed using the previous year’s appropriation as the starting point.  The value or effectiveness of a program was rarely the driving force of the appropriation discussion. 

It was time to produce a budget that was centered on the results that Michigan residents expect from their government at the price they are willing to pay. 

We accomplished our goals of funding our priorities, purchasing goods for our residents where we will see quality results, and balancing the budget without placing an additional burden on our citizens through a tax increase.

Throughout the new experience, we saw democracy on display and it worked to protect this state and preserve its success in the future.

I’m pleased with our efforts and look forward to working on next year’s budget implementing many of the principals that went into constructing this responsible budget.  The POG process served as a valuable guide in realizing a truly balanced budget which provides a more effective and more efficient government for the taxpayers of this state.”

Rep. Bruce Caswell (R-Hillsdale)

“I found the POG process to be extremely valuable.  It allowed us, as legislators, to examine every line in the budget and ask pertinent questions.  In addition, I have already identified areas of improvement in the next budget because of work that was done this year.  My work for next year will begin on October 3.  There is no need to wait for the Governor’s budget before beginning work.  With this continuous improvement process known as POG our work as a legislature to improve the spending of your tax money should never rest.  I also must say that the leadership of Representative Hummel and Speaker DeRoche was outstanding and critical to the success of our first year.”

Rep. Glenn Steil, Jr. (R-Grand Rapids)

“My sincere thanks to the Michigan Association of Realtors for their help and influence in getting the Price of Government to take hold in our state.  A fair, utility-based form of government has been long overdue in Michigan and I look forward to where this concept will take us. 

We can be proud that ideas are starting to take hold.  With a big concept the greatest battle is often on an ideological level and the Republican Party has made winning the battle for the Price of Government one of our top priorities.  Victories came in trimming $7 million dollars from the Department of Labor and Economic Growth’s budget for their sub-par performance.  At the same time, we added $7 million to fund our WIN initiative that will reward colleges and universities for excellence.

More needs to be done, but what is clear is that things have started to shift toward a more reasonable way of government operation.  For welfare, we at least managed to obtain concessions that will happen if certain standards are not met in the Department of Human Services.  This is a significant step because it is a move toward efficiency.

Rep. Scott Hummel (R-DeWitt)
Chair Appropriations

Absolutely POG was valuable.  The process required legislators to ask different questions.  As a result, we were more focused on outcomes and accountability to the taxpayers.  Over time, it is easy for an attitude of entitlement to develop with little thought given to results or incentive for responsiveness.  The new process is a remedy for “bureaucracy as usual.”  Without the process, it is doubtful that we would have achieved our goal of living within our means.

POG definitely has a future in MI.  University presidents are committed to a formula this year and a framework for future outcome measurements was established in several departments.  The Department of Corrections will be looking afresh at whether their programs reduce recidivism; Human Services will begin pilot programs to transition work-eligible people off welfare; and patient responsibility will be considered as Community Health looks at how to keep people healthy. 

Nine priorities were established this year, with rankings for recommended spending completed within each priority.  I believe the process would be improved by establishing nine subcommittees—one reflecting each priority.

Rep. David Farhat (R-Muskegon)

In the past, we funded government by utilizing the concept of maintaining and expanding on previously established priorities.  Inherent problems with this method began to surface as the state took in less tax revenue, yet continued to maintain and even increase funding levels in all areas of government.  In recognizing these problems, we had to take a dramatically different approach to appropriating funds.  The concept of “zero base budgeting”, which suggests funding government from the ground up saw success in budgets produced by the Michigan House and Senate. 

The process of balancing a budget by emphasizing results and focusing on return on investment is found throughout the business world, yet is a concept seldom used in government.  This approach gives us the opportunity to fund those programs that are achieving success, while cutting programs that are not.  The reality of making difficult budget decisions with limited resources is nothing new for Michigan families.  It is time that our state government bears the same burden.