Blue State Incompotence: Michigan Lawmakers Try to Avoid Shutdown

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http://www.newsmax.com/us/michigan_budget/2007/09/30/36929.html

Michigan Lawmakers Try to Avoid Shutdown

Sunday, September 30, 2007

LANSING, Mich. -- With only hours left before the new fiscal year, lawmakers
scrambled Sunday to craft a budget deal that would plug a $1.75 billion
deficit and avoid a partial government shutdown.

The Legislature needs a spending plan finished in time for the fiscal year
to start on Monday or most government operations will cease, including food
safety and gas pump inspections, liquor deliveries, lottery ticket sales,
the issuance of driver's licenses, and road construction.

But the three Detroit casinos, which reportedly contribute $1 million a day
to state public schools and Detroit public safety, can stay open even if the
state can't oversee them during a shutdown.

Democratic Gov. Jennifer Granholm has told about 35,000 of the state's more
than 53,000 workers not to report to work on Monday if a shutdown occurs.
The remaining workers, mostly related to public health and safety, would
stay on the job.

Republicans have pushed Granholm to accept a temporary budget that would
extend the one currently in place, giving legislators more time to craft a
long-term deal.

Granholm has said she won't sign a temporary budget unless she has
assurances higher taxes to pay for education, public health and other
programs are part of the deal.

Some cost-cutting moves and government restructuring proposals had started
to advance through the Legislature during the overnight session.

A conference committee passed a bill Sunday morning that would extend the
state's 6 percent sales tax to a wide range of services, including ski
tickets, administrative services, consultants and janitorial services. Even
if the measure passes the full Legislature, it still leaves a hole of more
than $1 billion.

A proposal approved 21-17 by the Republican-led Senate would aim to save
money by changing how health insurance benefits for teachers and government
workers are managed.

The measure is key to the overall budget deal because it could be a
trade-off to get Republicans to vote for tax increases. It remained 10 votes
short of passage in the House.

The House passed bills to create incentives for Medicaid recipients to lead
healthy lifestyles, among other reforms, which now are headed to the Senate.

Legislative leaders said they remained optimistic a deal would be reached in
time to avert a shutdown.

"We're going to get it done today. You'll see the House act today," said
House Speaker Andy Dillon, D-Redford Township.
 
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