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Jennifer Granholm on Budget & Economy

Democratic Governor (MI)


Lower tax rates mean budget cuts, then more cuts

The spending cuts during my first four years in office were largely the inevitable consequence of the tax cuts pushed through by my predecessor, John Engler, in the late 1990s. With the state flush with revenues, those cuts sounded reasonable at the time. Lower taxes of course meant more money available for private-sector spending and investment.

When the boom of the 1990s ended--as booms inevitably do--the impact of the tax cuts on state budgets suddenly hit home. Without the cushion of an ever-growing economy, lower tax rates now meant less money for state services. And that meant budget cuts, cuts on top of cuts, and then still more cuts.

Source: A Governor's Story, by Jennifer Granholm, p.119-120 , Oct 1, 2005

Other governors on Budget & Economy: Jennifer Granholm on other issues:
MI Gubernatorial:
Mark Schauer
Rick Snyder
MI Senatorial:
Debbie Stabenow
Gary Peters
Matt Wiedenhoeft
Terri Lynn Land

Election 2013:
NJ-R: Chris Christie (won)
NJ-D: Barbara Buono (lost)
VA-R: Bob McDonnell(Retiring)
VA-R: Ken Cuccinelli (lost)
VA-D: Terry McAuliffe (won)

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AL: Bentley(R) vs.Griffith(D)
AR: Ross(D) vs.Hutchinson(R)
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Page last updated: Apr 11, 2014