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REPORT NO. 136, VOLUME 48-- FRIDAY, JULY 17 2009
BUDGET TALKS STILL APART
2009-10 budget talks have made some progress, sources indicated, but Democrats and Republicans are still far apart on cuts and possible revenues.
The two sides are growing closer to an agreement on the level of general fund cuts, sources said, but have no agreement at this point on what areas should be cut.
In addition, the different sides are far apart on agreements on areas like K-12 School Aid and budget areas that use specific revenues, sources said.
Republicans are also disturbed by the amount of money the administration of Governor Jennifer Granholm is proposing be raised through tax changes. The administration has apparently proposed changes in tax law, including cuts in credits, that could raise as much as $500 million to $1 billion.
Senate Republicans called for about $900 million in general fund cuts for 2009-10, and apparently the administration is willing to accept about $820 million in cuts, sources said.
However, so far there is no concurrence on where the cuts would occur between the two sides, sources said. The administration has apparently proposed a series of cuts that does not match cuts legislative Republicans have proposed meaning there is still much negotiating to proceed, officials said.
There is no concurrence as well on how to deal with issues such as the Michigan Promise scholarship program, officials said. The Senate eliminated it from its version of the higher education budget while Ms. Granholm has said it has to remain, even if it has to take cuts.
Sources also said Republicans are reviewing the tax proposals made by the administration to determine if there were any they would support, and if so, how much revenue they might raise for the upcoming fiscal year.
Pamela Ann Martell
Higher Education Consultant
King-Chavez-Parks (KCP) Initiative
Michigan Department of Energy, Labor & Economic Growth
201 N. Washington Square
Victor Office Center, 3rd Floor
Lansing, MI 48913
Direct Line: (517) 335-3009
Main Line: (517) 373-9700
Fax: (517) 373-2759
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