Michigan is faced with a $1.7 billion dollar deficit next year. The deficit is a result of a downturn in the economy and tax rollbacks that have reduced the amount of tax revenues paid by Michigan businesses and individuals. The deficit will dramatically impact Michigan natural resources as cuts curtail or eliminate programs designed to protect our air, water and public health.

General fund support for the Michigan Department of Environmental Quality (MDEQ) has fallen 50% over the last two years. The short-term impacts of these cuts have been delayed by the use of one-time revenue sources. However, they will soon be exhausted. DEQ's ability to protect public health and the environment has already been eroded and will decline further unless new funding is found.

MDEQ Budget General Fund
Fiscal Year 2001-02 $101,007,900
FY 01-02 after cuts $ 83,613,700
Fiscal Year 2002-03 $ 72,432,500
FY 02-03 after cuts $ 66,653,161
FY 2003-04 proposed $ 53,055,800

Governor Granholm tried to protect the MDEQ from further cuts by replacing general fund with user fee proposals. The user fees include doing away with free permits to pollute rivers and lakes, groundwater pollution discharge fees and landfill inspection fees.

The new fees will be used to offset the $13.5 million reduction in general fund support for the department-with the offset general funds helping to balance the state's budget. The remaining funds will be used to restore a small portion of the MDEQ cuts made over the last three years.

MEC believes the reasonable user fee proposals need to be strongly supported. MEC has been working with Clean Water Action, PIRGIM, WMEAC and the League of Conservation Voters Education Fund to promote NPDES permit fees in particular.

Rep. John Pastor (R-Livonia), Chair of the House Appropriation Subcommittee for the DEQ, authored a bill that removed all the new fees and cut general fund support. This resulted in additional general fund cuts of 15% for environmental protection programs and 30% for administration-reducing overall general fund support for the department from $53 million to $44 million.

Impacts of the budget cuts

Cuts to the DEQ Budget approved by the State House would have the following impacts:

• The layoff of up to 120 employees.
  
• Losses of over $15 million in federal grant money, including money for drinking water system and sewer upgrades, non-point source water pollution and radon detection. Under the clean water program, Michigan loses $4 in federal money for each $1 the state fails to place in the fund.
  
• Long permit backlogs for businesses-making it harder for Michigan to attract investment.
  
• A risk that some state programs, such as the NPDES (water pollution discharge) program, could be taken over by EPA due to the state's failure to operate a credible program.
  
• Cuts to the hazardous waste and solid waste program that will reduce the inspection of waste generated within the state or imported from outside our borders.
  
• Reduced public access to information on the Internet.
  
• Continuation of the policy of free permits for discharges of water pollution into our Great Lakes.