DIRE REVENUE SITUATION FACING STATE, BUDGET WORKGROUP TOLD

A bipartisan, bicameral workgroup met for the first time Tuesday and heard a dire picture of the state's fiscal and economic status.

As the Legislature is still on a two-week break, members of the workgroup were told to think of ways to trim back the budget in face of declining revenues - an outlook made even bleaker by the possibility of General Motors going into some type of bankruptcy and Chrysler merging with Italian automaker Fiat.

It doesn't appear the workgroup will convene again until the Legislature is back from break, but the four legislative leaders will hold a quadrant meeting Thursday to discuss the budget.

Earlier this week, Governor Jennifer Granholm said even with the federal stimulus, the state will have to make significant cuts to balance its budget. And one official in the meeting Tuesday said most of the cuts will have to come from areas not receiving federal stimulus because of the prohibition against cutting programs tied to those dollars.