LANSING – Despite continued cries from some lawmakers that budget cuts have gone far enough and that new revenue is critical to fix the budget hole, Michigan small business leaders say that more reforms are needed as long as the state pays 70 percent more for its employees to get “Cadillac insurance coverage” than the cost of small business owners’ average health insurance policies.

“These very high health insurance costs for state workers vividly demonstrate that it’s completely false to claim that the state budget has been cut to the bone,” SBAM Vice President of Government Relations Todd Anderson said. Anderson was the campaign director for Dick DeVos? failed gubernatorial bid.

Anderson said that the average SBAM family policy cost $10,128 while the average comparable policy for state employees cost $17,085.

“Small business owners would love to be able to afford to offer their families and the families of their workers the same generous health insurance that is provided to state workers. But the economic reality is that small businesses can’t come close to affording that kind of Cadillac coverage,” Anderson said.

Although Mr. Anderson said that decreasing the cost of state employee health coverage is one example of where cuts can be made before the Legislature considers a tax increase, several lawmakers have reiterated that there isn’t any more fat to be trimmed.

House Community Health Appropriations Subcommittee Chair Gary McDowell (D-Rudyard) echoed the point during a Michigan State Medical Society conference Wednesday afternoon.

“We all need to come together on the budget and look at what’s best for the state,” he said. “We need to raise revenue. We cannot continue to cut.”

Liz Boyd, spokesperson to Governor Jennifer Granholm, said the comments from SBAM ignore the fact that state workers have already given up $300 million as part of their current contract and have been asked to take more cuts in the latest round of contract negotiations.

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