PROPOSED CUTS MORE IN FOCUS AS DISCUSSIONS CONTINUE

Differences were narrowing by the end of the week as a bipartisan group of legislators along with administration officials worked to resolve a $785 million deficit. And the size and scope of the proposals also came into clearer focus, with sources confirming that Senate Republican participants offered a plan to cut $277 million in the current year.

House Democrats still have not quite completed all the details of their proposal, but it would approach $270 million in reductions, though not with the same level of hard cuts the Senate is proposing. Both would use significant federal stimulus funds to avoid even deeper cuts.

Both proposals involve some across the board reductions.

But the Senate plans would affect more programs with reductions, including some non-Medicaid services in the Department of Community Health, while some of the items on the House list rely on such things as lapsed funds that do not cut services but do help lower the deficit number.

One Senate source said the rules that governed how the state can use federal stimulus money largely dictated the direction that caucus went with to propose cuts.

Difficult as they will be to make, the Senate source it would still be better to make the reductions now than face a tougher task making the cuts in later budget years.

The various proposals were to be reviewed with the group planning to meet again Tuesday. Final decisions will be made by the quadrant of legislative leaders and Governor Jennifer Granholm, who are not expected to meet until later in the week.

An executive order cutting spending for 2009-10 could be issued following submission of a five-day notice by the governor. Officials still hope at least the notice will be issued next week.

The reductions would go into effect upon approval by the Senate and House Appropriations Committees, with the sides hoping that agreement would have been reached prior to submitting the order. If the order fails to be approved within 10 days, the governor would have to draft a new one.