Lawmakers expect to meet Thursday deadline for $1.2 billion in Michigan budget cuts
Although Michigan budget cuts have yet to be finalized, lawmakers expect to meet the Thursday deadline for $1.2 billion in budget cuts.
“All of the budgets are in various stages right now,” said Liz Boyd, spokeswoman for Gov. Jennifer Granholm. “No balanced budget plans have reached Gov. Granholm’s desk yet.”
If the state does not finalize cuts, it must pass a continuation budget by the Thursday deadline, or it will experience a partial government shutdown.
Boyd said the state is trying to avoid a shutdown at all costs.
“Everyone is working right up to the budget deadline to get this done because we do not want a government shutdown,” she said.
As of Tuesday evening, the Senate and adjourned and the House remained in talks to resolve issues.
No need for backup?
Michigan revenues are at their lowest in 45 years. The state expects to be short nearly $3 billion of its yearly budget for the next fiscal year. More than half will be covered by stimulus money, which leaves $1.2 billion to overcome.
Some of the budget cuts may include aid to cities and townships, Medicaid and state help for the mentally ill.
“We will not need backup plans because they are very confident that the deadline will be met,” said Abby Rubley, spokeswoman for House Speaker Andy Dillon, D-Redford. “We are still waiting for all of the reports to come in that they are still working on.”
Political science instructor Alper Dede said he does not expect all the money to come from budget cuts.
“A parallel policy is increasing taxes,” he said. “It’s not just budget cuts.”
The state is expected to tax items such as bottled water and vending machine items. Granholm suggested cutting spending by more than $800 million, which would leave the rest of the deficit up to raising taxes.
Painful cuts
Boyd said there is nothing Michigan can do to avoid taking drastic measures.
“Regardless of what the final budget plans there will be, the cuts are going to be very painful,” she said.
Dede said he expects the education system and some state services to be affected, especially schools with lower enrollments.
Dede also said Michigan residents are not going to like the cuts, no matter what.
“There aren’t any people who like to see the government spending less on them,” he said.
The discussion of the cuts will continue right up to the deadline, Rubley said.
“Absolutely everything is still being discussed right now,” she said.
Despite the cuts, some programs have seen success in the process.
A state House committee voted to restore $120 million for the Michigan Promise grants, although the future of the grants is still uncertain. A legislative conference voted to give the Michigan State Fair $6.7 million to keep it running for another year and a $500,000 to find someone to run it.
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