Granholm: Pay more to play in Michigan

Granholm proposes $115M in fee hikes for fishing, hunting licenses and business charges.

Mark Hornbeck / Detroit News Lansing Bureau

LANSING -- Hunting fees would double and fishing licenses would cost 43 percent more under a $115 million package of fee increases proposed by Gov. Jennifer Granholm as part of her budget balancing plan.

The proposed fee hikes, detailed this week in budget analyses, are in addition to Granholm's call this month for a new, 2 percent tax on services, and higher taxes on liquor and cigarettes. The tax and fee increases are intended to balance the 2007-08 state budget, which goes into effect Oct. 1.

They are a critical part of her approach to cover an $850 million deficit this year and a shortfall that could top $3.5 billion over the next 18 months if nothing is done.

Altogether, the administration is proposing 26 fee increases, including a number of fees paid by businesses. State park permit and camping fees, and driver's license and vehicle registration fees aren't among them.

Granholm's initial recommendation is a doubling of the cost of resident deer hunting licenses, from $15 to $30; and an increase in resident all-species fishing licenses from $28 to $40. State officials say the hikes are needed to maintain and improve resource management. One plan would phase in the increases over three years. The amounts are under negotiation with lawmakers.

Randy Golab, a 39-year-old outdoorsman from Clarkston, opposes the fee hikes.

"I could pay the increases for my hunting and fishing licenses. But how about the guy who kills for food? If he can't afford to buy meat, he probably can't afford to pay more for a hunting or fishing license," said Golab, an account manager for a computer firm.

"It just seems you're making it more difficult for people to buy a license and not raising that much more money for the state."

About $4.7 million would be generated by new fees, $58 million from increases in existing fees, and $52 million by extending fees that were due to expire.

Greg Bird, spokesman for the state budget office, said Michigan's financial crunch requires users to pay more for services.

"Some of the new fees are required for various departments to continue to provide those types of services," Bird said.

State officials are working with the Legislature on the hunting and fishing fee increases, which were recommended by the Natural Resources Commission.

"The public will see some sort of increase, but probably not what has been proposed," said Rep. Joel Sheltrown, D-West Branch, chairman of the House Tourism, Outdoor Recreation and Natural Resources Committee. "We don't want to price these licenses beyond the reach of people, but some kind of increase is needed or they're going to lay off conservation officers.

"Very few legislators want to vote for any fee increase. It's not popular, but it might be responsible," he added.

Some fee raises would be borne by businesses. For example, fees on air emissions permits would be raised, bumping up the state's take by $5.5 million from $11 million to $16.5 million. Solid waste disposal, groundwater discharge and other services would face fee hikes.

Electricians would pay an additional $580,040 a year for professional licenses. An increase for mechanical contractors would take effect in 2010.

The governor's plan would triple the cost of a liquor license. A class C license for bars and restaurants costs $600. The proposal would increase that to $1,800. The fees haven't been increased in 30 years, and the licenses can sell for more than $100,000, according to a state budget office memo. The revenue would go to local police and fire protection.

Terry Nagle of Royal Oak, who runs a small auto supplier company in Sterling Heights and may have to pay some of the increases, said tax and fee hikes are killing Michigan businesses.

"I agree with whoever said that taxing our way to prosperity is like trying to lift up a bucket by the handle while you're standing in the bucket," said Nagle, 40.

"We're already losing jobs, and the governor wants to take more money out of our pockets."

But Ken Hreha, a 49-year-old Dryden man who is self-employed, said user fees are probably the fairest way to go.

"If people are using these services and the state budget is in a tough spot, it's more fair for users to pay the increases," he said.

You can reach Mark Hornbeck at (313) 222-2470 or mhornbeck@detnews.com.