Granholm concedes new revenue won't happen in '09

Governor Granholm has acknowledged that she probably won't win her fight for new revenue before the Legislature breaks for the year. Lawmakers are expected to wrap up work this week on school reforms that are required to compete for federal Race to the Top funds. The Legislature will then be out until mid-January.

The governor says she hopes the Legislature will go right to work next year on finding a new source of money for schools and finalize up the budget before the election season begins.

"It's feasible to do it by the end of February, if they are serious," she says. "Look how quickly they have responded to the Race to the Top opportunity. So, if we get that finished this week, which I think we will, it should be a signal that the Legislature can get it done, but they have to agree."

The governor says revenue projections due in January will confirm there is a school funding crisis. She also wants the Legislature to restore the Michigan Promise college scholarship and reverse cuts to Medicaid and local governments.