By AP
LANSING, MI – Republican Senate Majority Leader Mike Bishop and Democratic House Speaker Andy Dillon have signed an agreement to cut $1.2 billion in spending to resolve a deficit in the budget year starting Oct. 1.
Bishop says the deal requires no new tax increases.
Lawmakers will be given budget targets and it will left for them to try and come up with plans that could pass both the Democratic-led House and the Republican-led Senate.
Democratic Gov. Jennifer Granholm, who must sign the budget bills, has been opposed to cuts as deep as the Senate has approved for college scholarships, early childhood education, tax revenue sharing for local governments and community health.
A message seeking comment was left with Granholm's office.
Michigan can erase more than half of its projected $2.7 billion deficit with federal stimulus cash, but needs to take other steps to fill the gap.