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HOUSE SETS BUDGET TARGETS

The 2009-10 fiscal year budget's general fund support would be pared
back $525.8 million under budget targets the House set Wednesday. 

Republican officials in both the House and Senate could not be reached
for comment, but it appeared the targets were not agreed upon by the
legislative quadrant. 

The biggest hits
<http://www.gongwer.com/public/housebudgettargets6-3.pdf>  would come
from a $90 million cut to higher education, $90 million reduction in
statutory revenue sharing, $125 million from the Department of Community
Health, $80 million in Department of Corrections and $125 million in the
Department of Human Services. 

All told, the House is working under the assumption of $8.38 billion in
available general fund revenues, down from the $8.96 billion Governor
Jennifer Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1>
used to present her budget back in February. 

At the May Revenue Estimating Conference, the state's top economists
predicted the state's main checkbook would be short $984.8 million. 

The state should have about $950 million in federal stimulus funds
available next fiscal year, plus any additional funds that are carried
forward from the current year.

But stimulus funding will significantly drop off starting in the 2010-11
budget year. 

Appropriations Committee chair Rep. George Cushingberry Jr.
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=34401&locid=1>
(D-Detroit), who had received the targets from House Speaker Andy Dillon
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=105001&locid=1>
(D-Redford Twp.) earlier in the day, said he did not like the targets
but he also does not like seeing two of the domestic car companies in
bankruptcy either. 

The House will move forward on a timeline of getting the budgets
completed by the end of the month, Mr. Cushingberry said. 

"If the Senate doesn't want to set any targets, that's their plan," Mr.
Cushingberry said. "We're ready to rock and roll."

And Mr. Cushingberry said now is the time for lawmakers to propose
government reforms "in wholesale ways."

For budgets reported out by subcommittees that are above the targeted
numbers, the Investigations, Intergovernmental Affairs and Oversight
Subcommittee will take over their review, he said. 

Senate Republicans are still working on their budget proposals, and may
release them at the first part of next week, officials have said.

It is expected, though, they will call for larger overall budget cuts
than House Democrats.