7/25/2019 Running the State like a business?
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Editorial
By Alan J. Kilar
Running the State like a business?
Many policy makers in Lansing boast that they run the State like
a business. n!ortunately" !orthe ma#ority o! Michiganders this has
not $orked.
%n the business $orld" entities e&ist to make pro!it !or the
o$ner or stockholders. Each action ordecision must ans$er the
'uestion (ho$ does it a!!ect the pro!it margin). *ery !e$" i!
any"corporate decisions are made !or the common good.
(Running the state like a business) legislators seek to pro+ide
ser+ices ,products- in the most
cost e!!icient manner. heir belie! is that e!!iciency means the
spending o! ta& dollars" and thusless ta&.
/ne reason !or the establishment o! go+ernment is to promote the
common good. he American0onstitution itsel! says that go+ernment
should promote (the general $el!are.) But today itappears that many
la$ makers ha+e !orgotten this purpose o! go+ernment and replaced
it $ith themantra o! cut ta&es and thus gro$ business.
So ho$ has this $orked in Michigan? 1as it promoted the common
good? Michigan haspri+ati2ed many ser+ices $ith the claim o! same
ser+ice at lo$er cost. Most pri+ati2ationschemes in Michigan ha+e
turned out to be much like the cereal bo& that remains the same
si2ebut contains less cereal and really cost more. Local
communities ha+e pri+ati2ed schooltransportation and custodian
duties. 3orkers $ere paid less and the contract holder" usually
!romoutside o! the community made a pro!it. 4roperty and indi+idual
ta&es did not decrease but ta&dollars $ere sent out o! the
community and local employees due to smaller $ages had less tospend
in their community. Are our communities better o!! paying lo$er
$ages?
Taxes over the common good
4erhaps the t$o best e&les o! the !ailure o! the approach
o! (running the state like a businessare the 5etroit 4ublic Schools
and the 0ity o! 6lint. Both entities su!!ered ma#or collapses
o!their ta& base due" in part" to businesses mo+ing out o! the
state looking !or cheaper labor7business that $ere more interested
in the pro!it margin than the common good o! the
communities. hese are the +ery same businesses that pro!ited
!rom the $ide range o! ta& cutsMichigan8s business community
has seen o+er the last decade.
(Running the state like a business) legislators came to the
rescue by appointing EmergencyManagers !or 6lint and the 5etroit
Schools. hese managers8 !irst mandate $as to 9balance thebudget).
So $ith a diminishing ta& base they cut ser+ices" $ages and
gro$th $ith limited regard!or the common good.
