WHEREAS, Fiscal Year 2006 will mark the sixth consecutive year that state revenues have not been adequate to fund state programs and services; and

WHEREAS, The state now faces a current year deficit of $375 million and an estimated shortfall of nearly $800 million for fiscal year 2006; and

WHEREAS, Since the first decline in revenues in Fiscal Year 2001, Michigan has experienced cumulative deficits in excess of $7.8 billion, has exhausted nearly $3.8 billion in fiscal reserves and has instituted roughly $3 billion in spending cuts, equivalent to state program reductions of 10.4 percent; and

WHEREAS, Contrary to widely held assumptions, the ongoing fiscal crisis is not solely, or even primarily, the consequence of a lagging economy, rather it is a structural deficit requiring structural change; and

WHEREAS, The School Aid Fund is totally inadequate to meet the needs of Pre K-12 education; and the General Fund is totally inadequate for meeting the needs of universities and community colleges, and other vital state services; and

WHEREAS, The Michigan League for Human Services estimates that state expenditures will exceed revenues by over $400 million per year, resulting in total state deficits approaching $5 billion over the next decade; and

WHEREAS, Michigan's tax system is the fourth most regressive in the United States; and

WHEREAS, Local school districts have reduced staff, including through layoffs, reduced programs and services and have instituted larger class sizes as the per pupil foundation allowance remains flat. College tuition is higher at some colleges and universities; at other institutions program offerings have been reduced and students graduate at a later date; and

WHEREAS, The impact of reductions in programs and services goes beyond education and has been felt across Michigan. Municipalities have had to cut back on critical public safety services as a result of fewer revenue sharing dollars. Senior centers and library programs have been shut down and funding to local agencies has been reduced; NOW THEREFORE BE IT

RESOLVED: That the Michigan Federation of Teachers & School Related Personnel continue to engage in and support efforts to change Michigan's tax structure to make it adequate, stable and fair; and THEREFORE BE IT FINALLY

RESOLVED: That the Michigan Federation of Teachers & School Related Personnel incorporate these efforts into all aspects of its programming in order to educate membership and the general public as to the devastation that will continue to occur if Michigan's structural deficit is not properly addressed, and to provide a vision for what should be and what can be.