Lawmakers finalize Michigan state budget, no tax increases

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Lawmakers reached an agreement on the state’s budget late Wednesday night ending many months of discussion and avoiding what could have been the third budget-motivated state shutdown in the past four years.

The balanced budget was greatly aided by $1.6 billion of federal aid money, which will not be available next year, and an estimated $660 million in retirement incentives offered to state employees and teachers.

“The good news is we were able to complete the budget, and everyone’s grateful because they know where they stand,” said state Rep. Bill Caul, R-Mount Pleasant. “Unlike the other budgets that have gone past the September 30 deadline, we got this one done on time.”

Public school funding will return to a minimum $154 per pupil — $23 more than the previous fiscal year. The school aid budget was completed this summer. Caul said he was grateful districts could know their operating budgets before the school year began.

Higher education is receiving a 2.8 percent cut in funding. State police and prisons also will receive less money but the state will not be laying off troopers, only using the money they will retain more efficiently and realistically, Caul said.

“I am not pleased with it, but Michigan is struggling to provide the resources we’ve provided in the past,” he said.

Other parts of the budget will allow the Department of Human Services to add 684 child welfare workers and retain some scholarship money for higher education.

Caul said the budget was easier to accomplish this year because of the federal stimulus money.

Gov. Jennifer Granholm is pleased with the outcome of the budget in difficult economic times and was expected to sign the legislation Thursday, said spokeswoman Katie Carey.

“She will sign the legislation Thursday afternoon,” Carey said.

The budget must be in place today for government services to continue.

Bernie Porn, founding principal and president of EPIC/MRA, a Lansing-based polling group, said voters will be disheartened by cuts, but happy there were not any tax increases. In addition, while balancing the budget is important to them, the economy and jobs are far more important.

Many legislatures main motivation was to get the budget finalized on time without a tax increase, Porn said.

“Voters are not as concerned about those issues (balancing the budget, education) as they are about the economy,” she said.