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State Budget Battle

budget battle new1 State Budget BattleIn an effort to cut the state’s huge budget deficit, Governor Granholm plans to lay out a revised spending plan for lawmakers today.

Michigan faces a deficit in the budget that year that starts October 1st, even though the state is in line to get about $698 million more federal dollars for public schools and Medicaid.

Granholm already has signed a school spending bill into law, but deep differences remain between the Republican-controlled Senate and Democratic-controlled House over what the rest of the budget should look like.

WWJ Lansing Bureau Chief Tim Skubick is reporting that the governor’s plan is to include a tax amnesty program. That program could net the state an extra $90 million.

In response, Senate majority leader Mike Bishop says the Senate proposed such a program two years ago. But, he admitted that although it’s an old idea, it is a good one.

Copyright, 2010. WWJ Newsradio 950/Associated Press, All Rights Reserved.

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