Actions spur unsuccessful recall effort, a tent city for the homeless on the capitol lawn and approval ratings plummet into the low 30-percent range. State jobless rate peaks at 9.2 percent. Also closes mental health facilities in Newberry and Muskegon. Layoffs, attrition over two years cut state employment by 8 percent to 61,000. Republicans win control of the House, giving the GOP dominance over state government for the first time in 24 years.
Voters also pass term limits for state officeholders.
1993 Pushes through legislation that eliminated local property tax as the major source of school funding, laying the groundwork for education finance reform. In February, state jobless rate slips below national average for first time in 15 years. Welfare caseload hits all-time high in April at 232,795. Engler negotiates gaming casino pact with seven Indian tribes. In March, voters pass Proposal A school finance reform that shifts education funding to state sales tax, which increased from 4 cents to 6 cents on the dollar.