Gov. Jennifer Granholm says she remains optimistic that state lawmakers will pass a budget next month and avoid a government shutdown this year, but acknowledges that tempers are “flaring” in talks with legislative leaders.
The Detroit News is reporting that a growing number of observers say the likelihood of a shutdown is increasing because the Republican-controlled Senate, the Democrat-dominated House and the Democratic governor are far apart on budget proposals. In 2007, a budget stalemate forced state government to shut down for a few hours. The new budget under discussion would take effect Oct. 1.
"Tempers are flaring behind the scenes,” Granholm said.
According to sources, Granholm has proposed revenue increases and tax credit
savings of about $685 million to help balance a 2009-10 budget that has a $2.8
billion shortfall. But the proposals are meeting resistance in the Senate.
"The Senate remains committed to its plan of cuts in government
spending and using some stimulus money (to balance the budget),” said Matt
Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester. “But
the Senate doesn't have the votes for tax increases."
