Talks lead to little progress in MI budget impasse

Democratic Gov. Jennifer Granholm and Republican Senate Majority Leader Mike Bishop said Wednesday they don't expect another government shutdown over the budget, but they didn't seem close to agreeing on anything else.

The two met for just over an hour Wednesday afternoon before speaking separately with reporters.

Bishop said he told Granholm he sees no need for additional tax revenue to enact a yearlong budget for the state, and warned her against vetoing items in the budget bills.

"What she's going to do, if she decides to veto, is to unilaterally de-fund sections of the budget," he said. "They're still pursuing tax increases that are unnecessary at this time. They're bad for Michigan. And we're going to stand strong."

Granholm told reporters that she urged the Rochester Republican to compromise on limited tax and fee increases she says the state needs to pay for college scholarships, Medicaid, K-12 education and money local governments use for police and fire protection.

"I asked him in a number of ways to reach an agreement with me to fund these four areas," she said. "We have several major issues to resolve."

Bishop said he thinks he heard enough from the governor to send her the bills Thursday or next Tuesday. Lawmakers have passed all 15 departmental budget bills, but he's holding back the six that cover energy, labor and economic growth; general government; human services; state police; community health; and higher education.

Michigan is operating under a temporary deal that expires Oct. 31, but Granholm said she wants Bishop to send her the permanent bills "immediately" so she can act on them.

She also said that lawmakers need to take steps to pass legislation putting an extra $100 million into place for K-12 school districts. She said school aid revenues are falling below projections made in May and warned that not getting the money into place will mean schools will take more than the equivalent of the $165-per-student cut lawmakers intended.

"We have a major problem in the K-12 budget," she said.

Granholm also announced Wednesday that she has signed the budgets for the departments of agriculture, natural resources and environmental quality. She already has signed bills covering the departments of education, corrections, transportation and military and veterans affairs, as well as community colleges and the judiciary.

That leaves the K-12 budget and the six budget bills Bishop is holding. Granholm has said she will sign the K-12 bill.