By Rick Pluta, Michigan Public Radio Network
http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-903455.mp3
LANSING, MI –
The news was mixed Friday coming out of a conference on the economy and revenues at the state Capitol. The state faces a new budget deficit of almost $244 million. But there are also signals that the economic doldrums may be lifting.
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The deficit is mostly the result of higher-than-expected tax refunds the state owes to businesses. The new numbers will force Governor Granholm and state lawmakers to make a new round of budget cuts.
Robert Emerson is the governor's budget director. He says finding more cuts is a challenge this late in the fiscal year.
"I don't think we have a lot of time for disagreements," he advises. "I think we need to figure out how we resolve this as quickly as possible."
But schools won't be facing more cuts. Consumer spending is up and that's fueling an increase in sales tax revenues that pay for K-12 education. And economists predict the economy has bottomed out, and that in 2011 Michigan will see its first year-to-year increase in jobs since the beginning of the decade.