By Rick Pluta, Michigan Public Radio Network
http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-922931.mp3
LANSING, MI –
Governor Granholm has signed into law the first part of a deal to address Michigan's budget crisis. As Michigan Public Radio's Rick Pluta reports, it allows the state to take money from the School Aid Fund to help retire a deficit.
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$208 million from the School Aid Fund will pay for community colleges. That will free money in the state's General Fund to help balance the budget before the fiscal year ends on September 30. Governor Granholm's press secretary, Liz Boyd, says the School Aid Fund money will help avert cuts to higher education, job training, and public safety, and lays to rest a lengthy budget battle.
"This agreement reflects the budget priorities the governor outlined in her executive budget recommendation back in February," she says.
The Legislature tackles the budget for the coming fiscal year next week. Among other things, lawmakers will also have to decide between a controversial plan to trim state employee retirement benefits, or a reduction in payments to local governments that fund services such as police and fire protection.