GOVERNOR, LEGISLATIVE LEADERS LOOKING TO MEET ON BUDGET Governor Jennifer Granholm is asking for leaders in the House and Senate to sit down with her on Thursday to negotiate fixes to the state's remaining fiscal shortfall after the House late Tuesday approved its own budget-cutting plan. Ms. Granholm, Senate Majority Leader Mike Bishop (R-Rochester) and House Speaker Andy Dillon (D-Redford Twp.) were expected to meet on and off throughout the day, but where they will meet was not disclosed. A spokesperson for Mr. Bishop said he was confident such a meeting would take place but that the leader wanted time to go over the House-passed plan (SB 220 and SB 221) with his caucus. Matt Marsden said Senate Republicans were reviewing the proposal Wednesday afternoon. A spokesperson for Mr. Dillon also confirmed the Democratic leader would be in talks with Mr. Bishop and Ms. Granholm on Thursday, but no other details were available. So far, all three sides have only settled on $344 million in budget cuts to the 2006-2007 fiscal year (Executive Order 2007-3), which leaves $686 million in shortfalls that have to be dealt with. The House plan would cut $247 million in general fund and $85 million in school aid spending and implemented approximately $65 million in new revenues. The plan takes away the scheduled appropriation increase for the state's 15 public universities and delays their remaining August payment to October. Community colleges would also have their payments delayed but there would be no $34 per-pupil cut to K-12 as the Senate proposed. And the House plan does not cut revenue sharing or other health and human services programs the Senate had targeted for cuts. The Senate plan cut $278 million in general fund spending, which included increased appropriations for human services and corrections due to increased caseload and population pressures. In the School Aid Fund, the Senate cut $377.4 million. In response to the House budget cutting measures, Mr. Bishop said it, "is a positive step forward and breaks a major logjam in the process of resolving the budget deficit. The initial review of the House proposal suggests we have moved closer to an agreement on the 2007 budget shortfall and I am encouraged by the House finally presenting legislation to move this process forward." On Wednesday, House Appropriations Chair Rep. George Cushingberry Jr. (D-Detroit) said the panel could meet as early as Thursday to work on legislation implementing the EO cuts. The committee did not vote on the FY 2007-2008 higher education budgets. UNIVERSITIES QUESTION MESSAGE OF CUTS The day following the House's action eliminating all of the budget increases for universities in the current fiscal year, the universities questioned whether House Democrats are reading the same script as Governor Jennifer Granholm. "Governor Granholm has repeatedly said the promise of higher education must be for all children. I'm confused whether House Democrats understand that message," said Mike Boulus, director of the Presidents Council, State Universities of Michigan. The provision takes $43.2 million from universities dropping them back to 2005-06 funding levels. The budget plan also delays the remaining payment made to universities in August, which saves the state $66.5 million. "That's almost 50 percent of the general fund cuts enacted last night," Mr. Boulus said, adding that while community colleges would also receive a delayed payment in August, they wouldn't be subject to further general fund cuts. "We've got an awful lot of unresolved issues and they just added to that last night," he said, noting that universities are currently trying to put together their budgets for the 2007-08 school year and determine what if any tuition increases will be needed.