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State budget problems could take all summer to fix

State lawmakers returned to the Capitol on Tuesday after a two-week break with the growing realization it might take all summer to resolve Michigan's government budget problems.
/ Source: The Associated Press

State lawmakers returned to the Capitol on Tuesday after a two-week break with the growing realization it might take all summer to resolve Michigan's government budget problems.

Democratic House Speaker Andy Dillon of Redford and Republican Senate Majority Leader Mike Bishop of Rochester were working to hammer out a schedule for key votes needed to fill what could be at least a $1.6 billion hole in the budget for the fiscal year that starts Oct. 1.

Dillon said he would like to have the budget done by Labor Day, which is Sept. 3, at the latest. Bishop said he wanted to move quickly but noted that Sept. 30 is the actual end of this fiscal year.

"We all know we want to have this budget done as quickly as possible, so as soon as we can, we are going to come to a resolution and vote," Bishop said. "But right now, Sept. 30 is the deadline for our budget year."

Democratic Gov. Jennifer Granholm would prefer a faster resolution of the state's budget problems.

"The budget is the immediate priority, and the clock is ticking," Granholm spokeswoman Liz Boyd said.

Michigan lawmakers are discussing a mix of budget cuts and tax increases to balance the state budget. But the details of exactly what will be voted on _ and when _ are still fuzzy.

Several options for government restructuring and cost-cutting have been discussed but the list likely would need to be pared down before voting would take place in the Legislature. The same goes for tax increases and other new revenue proposals, although it appears a plan to raise the income tax will be in the mix. So might a tax on professional sports and entertainment tickets.

Another possible revenue increase proposal would add $1.35 to monthly cell phone and landline bills, with the money going to support a variety of public safety programs.

That proposal sparked dueling press conferences at the Capitol on Tuesday. Michigan State Police Director Col. Peter Munoz was among those in favor of the proposal, while Oakland County Sheriff Mike Bouchard was among those opposed. The two sides agree many of the programs included in the proposal should be high priorities, but they differ on how to pay for them, with Bouchard saying the money should come from the state's general fund.

Without specifying which revenue increase proposals ultimately will be voted on, Dillon said he believed the key money-raising measures would pass once the full budget-balancing plan is known.

"The votes are there when the deal is done, I'm confident of that," Dillon said.

But first there could be disputes about how big a hole there is in the budget.

House Republican Leader Craig DeRoche of Novi said this week the budget deficit is closer to $1.2 billion, based on a budget that spends the same amount of money as the current fiscal year plus some additional spending for welfare caseloads, state employee pay raises and repayment of delayed aid to universities.

The deficit would shrink further if government restructuring addresses some of those issues, DeRoche said.

State universities are raising tuition more than usual for the upcoming school year in part because of the government budget crunch. That prompted Senate Minority Leader Mark Schauer, a Democrat from Battle Creek, to say Tuesday that it's past time to adopt a spending plan for next fiscal year.