House Democrats expected to continue to push for K-12 funding

State House Democrats say they will continue to push for new revenue when they return to Lansing in January. Some lawmakers still want to restore money cut from the K-12 schools budget.

House Speaker Andy Dillon made a final attempt to woo Senate Republicans into approving a revenue plan in the waning hours of the 2009 session. He proposed a tax hike on some tobacco products and a freeze on the personal tax exemption.

"So out of that pot of money, we said, let's alleviate some of that 165, let's give a little bit back to 20j," he says.

That's the $165-per-pupil cut from the School Aid Fund, and the extra money cut from 20-J school districts - the state's wealthiest districts. Dillon offered Republicans some of the new revenue to reduce the Michigan Business Tax, as well. But even though the GOP wants major tax reform in the coming year, Senate leaders say they have no interest in raising money cut from the state budget in 2009. And they say the state needs to brace for even bigger cuts in 2010.