Granholm optimistic for 2010, but says budget may require "grand bargain"

Governor Granholm held her annual year-end meeting with reporters Tuesday at the state Capitol. The governor says times are dark right now, but she has high hopes for her last year in office.

The famously optimistic governor says this was a tough year for Michigan with the ongoing state budget crisis, the bankruptcy of two car companies, and a jobless rate that topped 15%. But the governor says she is optimistic about 2010 and beginning an economic recovery that will likely not reach full throttle until after she leaves office.

"We will do this, and we will be stronger for it, and 2010 will be a better year," she says.

The governor says it's not too late to restore the Michigan Promise college scholarship or big cuts to schools, Medicaid, and local governments. She says that will help make Michigan more attractive to employers. The governor says she also wants to revamp taxes and school funding next year, which may require what she calls a "grand bargain" with Republicans.