Governor makes budget plan public

LANSING, MI – Governor Granholm's released her plan for balancing the state budget for the new fiscal year that begins October 1. Her proposal to lawmakers includes a one-penny tax on bottled water, extending the sales tax to sports and entertainment tickets, and increasing the state tax on cigarettes to $2.25 cents a pack. She also wants to end some business tax breaks.

The governor is also calling for spending cuts totaling more than half a billion dollars, and phasing out part of the Michigan Business Tax over three years.

Republicans in the state Senate have called for more than a billion dollars in cuts, and no new taxes. The governor says she can't agree to cuts that include the Michigan Promise college scholarship.

"I think that's dangerous to Michigan's future and we've made a commitment to families," she says. "We don't want to do that. The Senate's proposed massive firefighters and police officers throughout the state, so we don't want to do that. There's a difference in priorities."

The governor says she wants to see the state House vote on the plan as early as this week. She is also continuing to talk to legislative leaders.