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

No announcements came out of budget talks between Governor Jennifer Granholm 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 (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 (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'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.