Michigan faces a $1.5 billion deficit for 2011. Total government debt exceeds $70 billion. Unfunded costs for pension and retiree health care add another $55 billion.
New Republican Governor Rick Snyder published a 20-page booklet to explain this fiscal crisis to state residents.
In the booklet it is clear what Snyder blames for the fiscal crisis and what he wants to cut. Namely, public sector wages and benefits.
Here's the cash flow breakdown. Note how important federal funds are (33%) to Michigan. What happens if these get cut?
Increases in state spending have been hoarded by health care, leading to cuts in areas like infrastructure
Now lets talk about the pension. Total unfunded liabilities are approaching $50 billion. Only $18 billion are constitutionally guaranteed
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