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In and outs of the political campaigns, focusing on Michigan and Lansing, Tim Skubick will report regularly throughout the primary and then general election campaigns.

Monday, August 8, 2011

Rocky Road for Rick

   Here's that bump in the road for the new governor who, up until right now, has been movin' along and singin' a song. Soon he will be carrying a different tune now that Michigan's fragile recovery has suddenly become more fragile.
   How so?
   Three words:  Congress and Wall Street.
    These are the same folks that brought us to the brink of a new depression and now this encore.
     The weak-kneed budget deal in Congress and the Wall Street credit down grading have combined to give the new governor a massive economic headache, only it appears he doesn't know he has it yet.
    The Democrats in this town are all up in arms that it is only a matter of time before the folks in the nation's capitol will order another round of trickle down budget cuts impacting the state budget.
    "It will be devastating," moans the ranking Democrat on the House Budget committee in Lansing. Rep. Fred Durhals, Jr. (D-Detroit) is playing Paul Revere and warning everyone that another ugly budget battle is looming.
     The almost upbeat governor is not ready to go there.  Yes, he concedes there will be some cuts, but how deep and how broad, he does not know and apparently until he does, he is not bracing for the worst.
     For a business guy with all sorts of business acumen, it seems a bit out of character.  Maybe he flunked Boy Scouts where they teach you to be prepared.
     Even though lawmakers finished the budget four months ahead of schedule, it's a good bet, with impending service cuts from D.C., they will have to revisit it later this fall.  Durhal predicts a battle as the R's will want to cut and the D's will want new revenue.
     And finally the Standard and Poors downgrade, which produced a nifty 600 point sell off on the market.  Do you suppose that will help or hurt the governor's economic recovery blue print?
    In order words, the governor is in for his first rude awakening and will be reaching for the pain relievers real soon.


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