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BUDGET TALKS CONTINUE; GRANHOLM MAY HAVE MORE SPECIFIC LIST OF CUTS 

No announcements came out of budget talks between Governor Jennifer
Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1>  and
legislative leaders on Thursday, but sources indicated Ms. Granholm may
have shown the group a more specific list of potential budget cuts.

What that list might entail, sources would not say, but one legislative
Republican said having a more specific proposal at this point could help
resolve the budget more quickly.

The state has to have its 2009-10 budget in place by October 1.

In a statement, House Speaker Andy Dillon
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=105001&locid=1>
(D-Redford Twp.) said new estimates from the Senate Fiscal Agency that
next year's deficit is $2.7 billion "show just how urgent it is to
produce substantial, long-term savings and break the yearly cycle of
budget deficits."

Mr. Dillon said he was not commenting on the "twists and turns" of daily
budget talks, but negotiations were ongoing. 

A spokesperson for House Minority Leader Kevin Elsenheimer
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=87101&locid=1>
(R-Kewadin) confirmed the quadrant did meet and discussed a variety of
issues affecting Michigan's families, but Bill Nowling would not comment
further.   

Mr. Dillon did praise Governor Jennifer Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1> 's
issuance of an executive order cutting 5 percent to 10 percent from
state contracts and limiting the use of temporary workers, but he added
the Department of Management and Budget may need more workers to fully
realize the immediate savings. 

DMB has fewer than 30 employees monitoring $20 billion in state
contracts, he said, adding he will support efforts to increase those
ranks.   Mr. Dillon said the auto industry used the same process and the
state could use some of the pool of purchasing agents.

"Our vendors and suppliers are our partners during this economic
downturn, and we all have a vested interest in the long-term health of
our state," Mr. Dillon said. "While we have to ask them to cut costs, we
will work with them to keep their people on the job." 

Meanwhile, a coalition of 40 different organizations, aimed mostly at
human services, health care and education, issued a statement calling on
the Legislature to close tax loopholes as a way of helping address the
state's budget needs.   Two months ago, the coalition consisted of some
30 groups.