Budget debate continues at Capitol

LANSING, MI – Governor Granholm is expected to resume signing and vetoing parts of budget bills this week. At the same time, she and the Legislature still have to decide how they will pay for spending plans.

The House and Senate approved a school aid budget last week with spending cuts that were less than feared. But, after losing $165 per student in state funding, many districts will still be sending out layoff notices with the school year already underway. And there is still no complete source of funding for schools since sales tax revenues have dropped by many millions of dollars.

Democrats and Republicans have no agreement yet on how to pay for schools. Governor Granholm says she's opposed to a Senate Republican plan to freeze the tax credit for low-income working families while lowering the state's business tax. Democrats are also looking for other sources of revenue to restore money for college scholarships and nursing homes.

The state is operating on a temporary budget until the end of the month.