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Governor Granholm's Budget Plan; August 17, 2010
Topic Started: Aug 17 2010, 11:43 PM (433 Views)
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Granholm to reveal 2010-11 budget Wednesday
Karen Bouffard / Detroit News Lansing Bureau

Lansing -- Gov. Jennifer Granholm plans Wednesday to unveil details of her 2010-11 budget plan and how Michigan will administer more than $300 million in federal money for schools approved by Congress last week.

The state is in line to get more than $600 million in school and Medicaid funding, but the Medicaid portion is roughly $260 million short of what the state needs for the fiscal year that starts Oct. 1. That gap likely will need to be filled with budget cuts or new revenue. There also is a $480 million deficit in the general fund budget.

Granholm noted outside a meeting of the Michigan Economic Growth Authority Board this morning that budget is unlikely to be passed until after the state GOP and Democratic conventions slated for the last weekend in August. But she also said she will meet with legislative leadership later today to discuss her strategy for resolving the budget gap.

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Negotiations continue on proposed changes to the state employee retirement system, which are considered a key to balancing the budget, Granholm said.

The school cash is the equivalent of 4,700 average teacher salaries, according to number provided by the U.S. Department of Education.

State Budget Director Bob Emerson, who also was on hand for the MEGA board meeting, said Michigan can choose one of two options for distributing the money to school districts. The money can be doled out according to how many students qualify for free lunch under the federal Title 1 program, or by using the state's formula for allocating school aid.

"It would be premature for me to say what (Granholm) has decided," Emerson said. "Last time I checked, she's still making her decision."

Under federal rules, the money cannot be used to restore cuts made to the state's highest-spending school districts earlier this year, according to Emerson. It also cannot be used to supplant money approved for K-12 education, he noted.

"This will be used to restore jobs," Emerson said. "There have been layoffs in nearly every school district in the state.

"It will be of use, the problem is it's one-time money, and trying to figure out how to disperse it."

kbouffard@detnews.com (517) 371-3660



From The Detroit News: http://detnews.com/article/20100817/METRO/8170416/1026/rss06#ixzz0wvRYHNpb
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Momof4
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"This will be used to restore jobs," Emerson said. "There have been layoffs in nearly every school district in the state."

This money will not be used to restore jobs. It will be used to continue spending way too much on benefits that in the long run do not benefit the children at all.
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writersblocked
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Momof4
Aug 18 2010, 02:00 PM
"This will be used to restore jobs," Emerson said. "There have been layoffs in nearly every school district in the state."

This money will not be used to restore jobs. It will be used to continue spending way too much on benefits that in the long run do not benefit the children at all.
Ha. Very well put, MO4.
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Granholm's budget includes mix of cuts, reforms
Ron French / The Detroit News

Lansing -- Gov. Jennifer Granholm proposed a mix of cuts and government reforms today to erase the red ink in the state budget, in a proposal that includes no tax increases or state worker layoffs. For the remainder of this fiscal year, which ends Sept. 30, Granholm recommended moving $208 million from the K-12 School Aid Fund to community colleges.

For the remainder of this fiscal year, which ends Sept. 30, Granholm recommended moving $208 million from the K-12 School Aid Fund to community colleges. Granholm also proposed pulling ahead $94 million in federal Medicare and Medicaid money.

For the 2010-11 budget year, Granholm proposed:

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• A 3 percent budget cut for all state departments, which would save $45.7 million.

• An additional $50 million cut from Corrections, Community Health, and Human Services.

• $98 million in state employee pension reforms.

• A tax amnesty program, which Granholm projects would bring in $61 million for the general fund and $26 million for the school aid fund.

• Putting the state's liquor distribution out to bid.

• Restructuring the state's long-term debts.

• Lowering the time before the state can claim unclaimed property from five years to three years.

Granholm called her plan a "tough budget."

Senate Majority Leader Mike Bishop, R-Rochester, said he was encouraged Granholm did not include tax increases in her proposal.

Granholm and the Legislature have a deadline of midnight Sept 30 to reach a deal on the budget.



From The Detroit News: http://detnews.com/article/20100818/METRO/8180424/Granholm-s-budget-includes-mix-of-cuts--reforms#ixzz0x1JtvQhq
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Granholm's budget plan includes cuts to agencies
BY CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU CHIEF

LANSING – A tax amnesty period next year, increased liquor sales hours and $220 million in unspecified cuts to corrections and other departments are key ingredients in Gov. Jennifer Granholm’s plan to erase nearly $800 million in deficits this fiscal year and a new one that begins Oct. 1.



Granholm today unveiled a plan that also relies heavily on some $600 million in one-time federal aid for Medicaid and public schools. She said that money would be spread among the two fiscal years.


She also called for a 3% across-the-board cut to state agencies. Another proposal would generate $168 million by the state taking more unclaimed property such as tax refunds, called escheats.


Lawmakers have about seven weeks to resolve a $302-million deficit for this fiscal year, and approve a general fund for next year. A school funding plan already has been approved with a surplus.

Granholm’s plan would take some of that surplus to erase this year’s general fund deficit.


Granholm said the proposal would inflict minimal pain with no state layoffs.


Senate Majority Leader Mike Bishop, R-Rochester, with whom Granholm has often battled over budgets, praised her plan for imposing cuts with no tax increases.


Read more: Granholm's budget plan includes cuts to agencies | freep.com | Detroit Free Press http://www.freep.com/article/20100818/NEWS15/100818053/1318/Granholms-budget-plan-includes-cuts-to-agencies#ixzz0x1KLwBik
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