Michigan GOP doesn't have the guts to cut spending, because here are the major cuts they could choose from: School Aid, higher education, reimbursement rates to doctors and hospitals for Medicaid, full elimination of Medicaid coverage for nursing homes or pharmaceuticals, reducing aid to local governments, or releasing non-violent prisoners early.
Now for their excuses for not making those cuts: School aid and higher ed are out because "it's about the children". Medicaid provider rates are out because the providers have powerful lobbyists and docs and hospitals give a lot of money to Republicans. Throwing grandma out of the nursing home or cutting off pharmaceuticals are out because of the political fallout, reducing aid to locals makes local Republican officials angry, and releasing non-violent prisoners looks soft on crime.
In other words, they don't have the guts to take on special interests, particularly not the school lobby.
You make some very valid points and I agree with all of them. The irony is that early in her administration, Granholm actually had the guts to take on higher education. They spanked her and she shut up. But at least she b*tched a bit about excess tuition increases and had a plan to deal with them. More than the GOP has proposed.