Retirement sweetener or cuts to MI revenue sharing


The state budget deal between Governor Granholm and House and Senate leaders includes retirement incentives for state workers that may not be popular with some lawmakers. The retirement plan is intended to bring more money into the state by increasing the required contributions of people who keep working.

Democratic House Speaker Andy Dillon says he understands some of his fellow Democrats may not like the retirement deal. But he says they either vote for it, or they vote for deeper cuts to local governments. He says those cuts would be a big blow to many cities.

"It would be a $60 million cut to revenue sharing, which translates to like 18 million for Detroit, 3.8 million for Wayne County, Grand Rapids one and a half million," he says. "If we don't get that retirement, then these revenue sharing cuts are going to hit."

Dillon says he hopes to have the state budget approved by the Legislature next week.