MI Lawmakers, governor seek opening in budget talks

LANSING, MI – Governor Granholm met Thursday with legislative leaders. They reported little progress in ending a budget stalemate.

The governor will get the final budget bills next week, when she's expected to carry out her threat to veto many line items. The governor and Democrats want to restore funding for the Michigan Promise college scholarship, as well as funding for Medicaid and local governments.

But Republicans and Democrats cannot agree on raising more money. Negotiations on revenue are expected to drag on for months.

Representative Kathy Angerer is the second-ranking Democrat in the state House.

"I would always say there is progress being made," she says.

Adding to the pressure for progress is the fact that the school budget is underfunded before it's signed -even though it already cuts state aid by $165 for every student. There could be another round of cuts to schools early next year if new money is not found.