Michigan Senate sends 6 budget bills to governor

Republican Senate Majority Leader Mike Bishop sent the final six budget bills Tuesday to Gov. Jennifer Granholm, but he warned her not to expect any additional money for programs she wants to restore.

"Do not veto portions of these budgets with the expectation that money will be reappropriated at a later date to fund the vetoed programs," he wrote in a letter to the Democratic governor. "There is not sufficient support in the Senate Republican caucus for tax increases and for you to think otherwise is a mistake."

The bills cover general government expenses, human services, state police, community health, higher education, and energy, labor and economic growth. They passed both the House and Senate 20 days ago, but were put on hold in a parliamentary move by Republicans who control the Senate.

Bishop said he held onto the bills because he didn't want Granholm to veto portions and leave the state with a deficit. But Granholm said Bishop needs to compromise to save important programs.

"We're encouraging everyone to be open to compromise and to avoid drawing lines in the sand," Granholm spokeswoman Liz Boyd said in response to Bishop's letter.

Granholm and the Senate majority leader have locked horns for weeks over the budget for the fiscal year that started Oct. 1. The state is operating under an interim budget that expires Oct. 31, and the governor must act on the bills by then or risk another government shutdown.

She has signed all the other budget bills and vetoed spending in some of them. She doesn't plan to entirely veto any of the remaining six but said she may veto portions.

Granholm says limited tax and fee increases are needed in the permanent budget to pay for college scholarships, Medicaid, K-12 education and money local governments use for police and fire protection. Bishop says he and other Senate Republicans see no need for additional tax revenue.

Granholm says the Senate hasn't finished its job because it passed a public schools budget without including enough revenue to cover its costs.

On Monday, she vetoed $54 million from the $12.9 billion budget bill because she said there's a shortfall of as much as $264 million in the plan. Most of the vetoed funds would have gone to 39 school districts that get among the highest per-pupil payments statewide - some nearly $4,000 more than the lowest per-pupil grant.

"As you know, these are districts that are represented by both Democrats and Republicans," Granholm said Tuesday in a conference call with reporters. "We need to raise revenue so we aren't cut with devastating cuts with the schools. ... There are no easy solutions to this size a hole in the school aid budget."