More Michigan budget cuts planned for 2009-10

Lansing, MI – Michigan's budget director says state departments will be asked to submit 8% cuts for the fiscal year that starts Oct. 1.

Lawmakers still are working on budget bills for the next fiscal year based on Gov. Jennifer Granholm's February proposal. But with revenues shrinking, budget director Bob Emerson said Friday that departments are being asked to trim 8% from that earlier plan.

The news came as state government's top economists met to reach a consensus on how much tax revenue the state will take in through the next budget year. Emerson estimates the state faces a $1.6 billion shortfall in the 2009-10 budget that must be made up. He said money from the federal stimulus plan won't be enough to fill all of the hole.