Small Government Act

A bill to achieve massive downsizing of Michigan state government; to impose mandatory zero-based budgeting and universal sunset clauses; to consolidate and eliminate redundant agencies and programs; to reform the state workforce and compensation systems; to privatize non-core functions; to enforce regulatory reduction; to redirect all savings to deficit reduction, tax relief, and the Michigan Sovereign Wealth Fund; to create a Downsizing Commission with strong accountability; and to produce a lean, efficient government limited to essential functions.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Section 1. Short Title.

This act shall be known and may be cited as the “Michigan Government Downsizing and Efficiency Act.”

Section 2. Legislative Findings.

The Legislature finds and declares all of the following:

(a) Michigan state government has grown bloated through mission creep, redundant agencies, special-interest programs, and unchecked spending, burdening taxpayers while often delivering poor results.

(b) A deliberate, aggressive program of zero-based budgeting, automatic sunsets, consolidation, elimination of non-essential functions, workforce reduction, privatization, and regulatory reduction can shrink the size and cost of government by 30 to 50 percent within a decade while protecting and strengthening core public-safety, infrastructure, and basic education functions.

(c) Savings must first reduce fiscal pressure and then accelerate tax relief and citizen prosperity rather than fuel new spending.

(d) Government should do only what it must, and do those things exceptionally well.

(e) All actions under this act shall comply with the Constitution of the United States and the Constitution of the State of Michigan.

Section 3. Definitions.

As used in this act:

(a) “Zero-based budgeting” means the requirement that every agency and program justify its entire requested budget from a base of zero each cycle, with no automatic continuation of prior-year funding.

(b) “Sunset” means automatic expiration of an agency, board, commission, program, or regulation unless the Legislature affirmatively reauthorizes it after review.

(c) “Commission” means the Michigan Government Downsizing Commission created in this act.

Section 4. Mandatory Zero-Based Budgeting.

(1) Beginning with the next full budget cycle, every state agency and program shall submit a zero-based budget justification. No funding shall be assumed to continue from the prior cycle.

(2) The State Budget Office and the Legislature shall evaluate each request solely on demonstrated need, measurable outcomes, and constitutional necessity.

Section 5. Universal Sunset Clauses.

(1) Every state agency, board, commission, and major program shall automatically expire six to eight years after the effective date of this act or after its most recent reauthorization, whichever is later, unless the Legislature explicitly reauthorizes it following rigorous performance review.

(2) The default outcome is elimination. Reauthorization shall require affirmative legislative action and a public finding that the entity remains necessary and effective.

(3) All state regulations of general applicability shall sunset five to seven years after adoption or last reauthorization unless re-justified and re-adopted.

Section 6. Massive Consolidation and Elimination.

(1) The Commission shall recommend, and the Legislature shall act upon, mergers or eliminations targeting a reduction of at least 30 to 50 percent in the number of state agencies, boards, and commissions within the first term after enactment.

(2) Categories subject to immediate rigorous review and presumptive reduction or elimination include:

(a) Non-essential diversity, equity, inclusion, and related ideological offices and programs;

(b) Education initiatives that demonstrably fail to improve student outcomes;

(c) Redundant economic-development boards and corporate-welfare programs;

(d) Underperforming arts and cultural grant programs serving narrow interests;

(e) Overlapping environmental and regulatory enforcement bodies;

(f) Unnecessary middle-management layers and administrative bloat; and

(g) Any program with high overhead and low measurable public benefit.

(3) Any program that fails predefined outcome metrics for two consecutive review cycles is automatically defunded unless the Legislature intervenes with a specific finding of overriding necessity.

Section 7. Workforce and Compensation Reform.

(1) An immediate hiring freeze is imposed on all non-essential positions. Headcount shall be reduced through attrition and targeted elimination of redundant positions.

(2) All new state employees shall be enrolled in defined-contribution retirement plans. Existing pension systems shall be reformed to sustainable levels consistent with constitutional protections.

(3) Caps shall be placed on top executive and administrative salaries. Full public disclosure of all state-employee compensation and benefits is required.

Section 8. Privatization and Competitive Delivery.

(1) Non-core functions, including but not limited to vehicle maintenance, selected information-technology services, institutional food services, and certain administrative tasks, shall be shifted to competitive private providers wherever cost-effective and consistent with public accountability.

(2) Public-private partnerships and competitive contracting shall be used to deliver infrastructure maintenance and selected services at lower cost and higher performance.

Section 9. Regulatory and Bureaucratic Reduction.

(1) A strict two-for-one rule applies: for every new regulation of general applicability proposed, two existing regulations of comparable scope must be identified for repeal.

(2) Permitting times for businesses, housing, energy, and agricultural projects shall be dramatically reduced through fixed timelines, concurrent review, and deemed-approved provisions for agency inaction.

Section 10. Use of Savings.

(1) All savings realized from downsizing shall first be applied to deficit reduction and fiscal stabilization.

(2) Remaining savings shall accelerate tax cuts under the State’s broader tax-relief and energy-dominance framework and shall be available for deposit into the Michigan Sovereign Wealth Fund to support citizen dividends and long-term tax freedom.

(3) Savings shall not be used to expand non-essential programs.

Section 11. Michigan Government Downsizing Commission.

(1) A Downsizing Commission composed of citizens and legislators, structured to resist bureaucratic self-preservation, is established with authority to recommend binding packages of agency eliminations, consolidations, and program terminations.

(2) The Legislature retains final authority but shall act on Commission recommendations under expedited procedures.

(3) A public transparency dashboard shall track in real time agencies and programs eliminated, positions reduced, dollars saved, and the status of essential services.

Section 12. Protection of Core Functions.

Nothing in this act shall be construed to weaken public safety, core infrastructure maintenance, or basic education funding delivered through parental-choice mechanisms. Those functions shall be protected and, where appropriate, strengthened with the efficiency gains realized elsewhere.

Section 13. Metrics and Reporting.

Annual public reports shall document the percentage reduction in agencies, commissions, and workforce; total dollars saved; tax-relief actions enabled; and maintenance or improvement of essential service outcomes. The strategic target is a state government 30 to 50 percent smaller in size and cost within one decade.

Section 14. Severability.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act and the application of its provisions to other persons or circumstances shall not be affected.

Section 15. Effective Date.

This act takes effect 90 days after enactment. Zero-based budgeting applies to the next full budget cycle. The Downsizing Commission shall be constituted and issue its first recommendations within 180 days. Sunset clocks begin running on the effective date.

Enacting Section.

This act is ordered to take immediate effect.

Cut the Waste. Shrink the State. Free Our People.

Smaller Government. More Prosperous Michigan. Michigan First.