No thaw in Michigan budget talks

LANSING, MI – Governor Granhom will meet Thursday with legislative leaders after a sit-down Wednesday with the Senate Republican leader failed to yield a budget compromise.

AUDIO: Governor Granholm and Senate Majority Leader Mike Bishop met for an hour. But Bishop continues to insist the budget should be balanced with cuts and federal stimulus funds, and without the new revenue she has called for to restore money for college scholarships, Medicaid, and local police and firefighters. So, the governor says, they remain at an impasse.

"I want to support these key priorities and apparently he does not want to find a way to fund them," she says.

The governor says she will veto budget line items that she considers less important than the priorities she's outlined to show there is money to fund them. But she says there's no escaping the reality that more revenue is needed, especially if the state is going to avert big cuts to schools early next year.