Gov. reveals budget plan details

EAST LANSING, MI – Gov. Jennifer Granholm has released a plan to cut spending by more than $550 million while raising that much in additional revenue to fill a shortfall in the general fund.

The governor put out written details Tuesday on how she would close a $1.8 billion general fund in the budget year that starts Oct. 1.

Her plan includes trimming some business tax breaks, including the film credits.

It also would lessen an increase in a tax credit for the working poor, increase liquor license fees, expand the 6% sales tax to live entertainment, service contracts and vending machine sales and raise the cigarette tax rate to $2.25 a pack, among other changes.

Her comments came after several Michigan business organizations said Tuesday they want lawmakers to cut spending and improve government efficiency rather than raise taxes.