Moderator Christy McDonald leads a lively discussion on state budget issues during a town hall meeting Wednesday night at Washtenaw Community College.

Ryan J. Stanton | AnnArbor.com

Canton resident Matthew Fiems said he works in downtown Detroit and has witnessed firsthand the difference the state's film incentives have made in the last few years.

"The office building that I worked in basically had three floors that were occupied and six floors that were not," he said. "Because of those incentives, I believe, a film company moved in, filled up the rest of our floor, our restaurants were busier, our streets were busier, and you could see a definite change. It made a positive impact."

Fiems said he's afraid the deep cuts Republican Gov. Rick Snyder has proposed to Michigan's film incentive program are going to destroy what's starting to become a real industry.

"Especially downtown," he said. "So I hope they reconsider that."

Most of the two dozen residents who attended Wednesday night's "Common Sense Conversation" town hall meeting at Washtenaw Community College seemed to be in agreement on one thing: They disagree with the governor's state budget proposal.

Ann Arbor resident Michael Elliott expressed concerns about Snyder's budget proposal, including a proposed 6 percent flat corporate income tax.

Ryan J. Stanton | AnnArbor.com

They disagree with making deep cuts to K-12 schools and public universities. They disagree with large tax breaks for businesses. And it seems they'd rather raise taxes than make cuts.

The Center for Michigan, MiVote.org and Detroit Public Television hosted Wednesday's meeting, which was moderated by TV journalist Christy McDonald. The meeting was a chance for residents to chime in and offer solutions to the state's budget problems.

"We're going to take all this information, and we're going to make sure Lansing knows what you're thinking," McDonald said. "I think now more than ever we're empowered as citizens of Michigan to come up with some ideas, and to tell the people in Lansing."

Wednesday's discussion was lively throughout. It was the second in a series of town hall meetings being held across the state, said John Bebow, Center for Michigan executive director.

Bebow said the results of the town hall meetings will be combined with public polling, and the Center for Michigan will issue a report this spring to explain what statewide citizens are saying and thinking about the 2011 reform approaches in the state Capitol.

The state budget cuts Snyder has proposed — partly to close a $1.4 billion deficit and partly to finance $1.8 billion in tax breaks for businesses — would negatively impact schools, universities, cities, townships, counties, senior citizens and low-income wage earners, among other groups. It also promises deep cuts to the state's film incentives.

"What is happening here is we have, I believe, a conservative agenda," said Chuck Fellows, a retired businessman from Livingston County who ran as a Democrat for the state Senate last year. "They believe, I think, sincerely in their agenda, but I don't think that agenda fits."

Ypsilanti resident Beth Hill received a round of applause when she said true "shared sacrifice" would be a graduated income tax proposal where higher income brackets pay a higher tax rate. So far, Hill said, what she's seen from Snyder are efforts to eliminate tax credits for low-income wage earners, reduce unemployment benefits and tax pensions.

"When are we going to see sacrifice from people who are in the governor's income bracket? The DeVos family. The Meijers," she said. "I have seen no sacrifice from them yet and their businesses are the ones that are getting all these tax breaks."

Wednesday's meeting touched on a wide range of issues. Attendees watched video clips from Snyder's February budget address before being asked a series of questions, which they answered using electronic remotes. Results were posted on a screen in real time.

When asked how they felt about Michigan at this moment, 64 percent said they were pessimistic and fear it's going to be a long, hard struggle for years to come. Another 4 percent went as far to say they were despondent and seriously thinking about leaving the state.

Asked about balancing the state budget, 79 percent said they favored a mix of tax increases and budget cuts; 17 percent said just increase taxes; and 3 percent said all cuts.

When asked about business taxes, just 10 percent said they supported a major business tax cut; 37 percent said they supported a moderate cut; and 47 percent said no cuts.

On Snyder's proposal to tax pensions, 65 percent said it wasn't a good idea, while 32 percent said it was a good idea; 3 percent were undecided.

Asked which tax they'd raise, 39 percent said taxes on alcohol and tobacco; 26 percent said sales taxes; 23 percent said personal income taxes; and 13 percent said business taxes.

Asked what to do about the state's unfunded legacy costs, 43 percent said increase taxes; 27 percent said they didn't know; 17 percent said cut elsewhere; and 13 percent said lower benefits or increase cost-sharing for pubic workers and retirees.

Asked where to cut, 41 percent said public safety and justice; 33 percent said economic development; 11 percent said transportation; 7 percent said revenue sharing; 4 percent said environment; 4 percent said education; and no one said health care and social services.

Asked where to invest, 43 percent said education; 17 percent said health care and social services; 17 percent said economic development; 10 percent said transportation; 10 percent said environment; 3 percent said revenue sharing; and no one said public safety or justice.

Ann Arbor resident Michael Elliott said he thought Snyder's proposed 6 percent corporate income tax, which would take the place of the Michigan Business Tax, was too low.

"If he developed a business plan that said cutting all these taxes for business was going to create some jobs, I'd like to see the analysis," Elliott said.

Multiple residents said they saw Snyder's budget as essentially a transfer of wealth that will lead to further dwindling of the middle class.

Residents spoke passionately in support of education. Snyder's budget proposes a 15-percent reduction in funding for state universities and cuts to K-12 education that work out to about $700 per student when factoring in increased mandatory pension contributions.

Toward the end of the meeting, laughter erupted in the room as McDonald asked the question: "What's the one thing you would tell Gov. Snyder?"

The first two people said "resign." Others said they hope Snyder is listening to what people have to say and is willing to rethink some of his proposed cuts. A few said they thought he was doing a good job as governor so far and they're still willing to give him a chance.

Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.