MLive columnist Rick Haglund found himself in the Los Angeles area on personal business, but used his time there to take a look at the similarities and differences between Michigan’s and California’s financial situations and municipal bankruptcies in this column.
Both states have faced statewide budget challenges and had cities in bankruptcy: Detroit, of course, Michigan, with Stockton and San Bernardino on the west coast. Both states have governors who have led aggressive efforts to remedy state budget deficits.
But the methods used by the states to deal with their financial issues, Haglund writes, are vastly different.
California’s scary budget deficit has been erased, mainly through an income tax hike on the rich that voters approved in 2012… Michigan has taken a different tack in its recovery course. Snyder’s first budget in 2011 cut taxes for businesses, and raised them for pensioners and many low-income families.