The Detroit tribune., 1962-10-06

~" per capita basis.
s'a'e taxes have doubled from $50
10 siia per person since 1850.
Local taxes have increased $50
percent during that same period
IN those eleven years. total
s'ate government expenditures
more than doubled from s556
million to Sl2 billion.
AT the same time. our state
general fund operating deficit
mas been increasing, During eight
OF the last twelve years Mich.
gan has operated in the red The
current deficit is about s85 mil.
hon dollars. And mind you in
l945 Michigan had a surplus of
S79 million.
In addition TO these start.
ing figures. our state bonded
Indebtedness has been increasing
~ a terrific rate. In 1850. il was
Just under 5000 million tsl93 s
millIoD. while in 1861 il was
over s7O0 million (S7092 Million
that's an eleven year increase
OF 267 percent.
Now. there are some compcn.
saiing factors for these friehten.
Ine figures Our state population
has increased by 25 percent dur
INK the l95Os. and some increases
IN taxes. spending and debt are
To be expected.
Ia addition. the cost of living
las increased by about 26 per
cent and this increase should
cause higher overall financing.
But the. real question is this:
Aren't we spending more now.
but enjoying il less?
These figures. which | have
cited Just briefly indicate several
things Even though taxes have
scared. bonded debt and operat-
ing debts or deficits still have in
creased.
Despite increases in state taxes
nearly every year, periodic bar
rcl-scraplneS, and cmptylng one
cookie jar after another-the
state has continual fiscal crises
and annual and growing deficits. I
" Fiscal responsibility and
m oncy mismanagemcnt, along
with other things, have given
Michigan the reputation of a.
problem state which stumbles
from crisis to crisis.
And. like squirrel on a
trcadmill. Aichigan'S image as
problem state has hampercd cur
economic growth and progress,
which in turns limits our tax
bases. ].
Michigan cannot have adc-
quatc public services at less than
exorbitant tax rates until we have
a vibrant and growing economic
base that will provide sufficient
tax resources.
Nov, happen 10 know a lit
tie bit about how TO clean up a
financial mess. inherited a fl
nanclal mess when | became the
President Of American Motors.
And | know that you don't put
your fiscal house in order just
by getting in more revenue. II
we had just sold more cars,
American Motors would not have
survived
II know from experience that
you've cot to look at every as
pcct OF your operations and cs-
lablish the essentially of every
thing you're doing. And ! know
that you've got to carry out these
essential services in the most eff
ficicnt and economical manner
possible That's the only way a
fiscal problem can be licked
AT American Motors. for exam
pie. we cut out the supplying OF
tree gasoline to executives care.
The first person that hit was me.
We sold couple of airplanes.
We cut out expensive and un-
necessary red tape And we cx-
panded our operations into some
other areas. And we never had
a payleSs payday, either
These specific details arc not
important to our discussion; the
point is that to solve financial
mess, you've got to take a search
ing look into everything you're
doing; and to make significant
changes. you've got to<do IT from
within the organization.
"Meaningful savings can be
achieved in state government.
What makes me believe this?
Well. there are a few indications
here and there.
(Continued next week. !