Posted 20 September, 2009 in MI News
Granholm says lawmakers to pass budget next month
MARK HORNBECK
Detroit News Lansing Bureau
Lansing — Gov. Jennifer Granholm predicted today lawmakers will pass a budget next month and avoid an Oct. 1 state government shutdown despite “tempers flaring” in budget talks.
She also said she does not want to “gut” the state’s film incentive program and indicated revenue increases are likely needed to avert dangerous budget cuts.
“I believe there has to be a blend of solutions,” said Granholm, who, according to sources, has proposed revenue increases and tax credit savings of about $685 million to help balance a budget for next year that is $2.8 billion out of whack.
“There will be more significant cuts. But I don’t want to cut so deeply it puts Michigan citizens in danger.”
Granholm and legislative leaders have been huddling behind closed doors for months trying to reach an agreement on the fiscal year 2010 budget, which takes effect in October.
A growing chorus of observers is saying the Republican-controlled Senate, the Democrat-dominated House and the Democratic governor are so far apart that the likelihood of a government shutdown is increasing. State government came to halt for a few hours in 2007 over a budget impasse.
“I think we will get an agreement without a shutdown,” Granholm said, but added: “Tempers are flaring behind the scenes.”
Among proposals made by Granholm is a slight reduction in the nation’s highest 42 percent tax break for film production. The governor did not back off that plan today, but said she doesn’t favor deep cuts or elimination of the controversial credit.
“I still want Michigan to be the most attractive state for the film industry,” Granholm said.
A film trade group rallied at the Capitol today and argued against proposals that would reduce or cap tax incentives for film companies.
The Michigan Production Alliance was among the groups lobbying to try and prevent possible budget cuts.
Critics say the film credit costs the state more than it is worth and proposals have been introduced to scale back the program.
mhornbeck@detnews.com”>mhornbeck@detnews.com (313) 222-2470 The Associated Press contributed.
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