Michigan budget update

Update: the Michigan budget crisis has temporarily been “handled,” for now. Per Fox News:

“The Legislature agreed to raise Michigan's income tax rate from 3.9 percent to 4.35 percent and expand the 6 percent sales tax to some services. Granholm signed both measures. Structural changes to state government — including the management of teacher and other public employee benefits — also are part of the package...

The tax increases should erase most of a projected $1.75 billion deficit in Michigan's next budget. The final budget for the new fiscal year will include $440 million in spending cuts, including no inflationary funding increase for public universities and community colleges, Granholm said...

Michigan already has the nation's highest unemployment rate — 7.4 percent in August — and just went through a two-day strike involving the United Auto Workers and General Motors Corp. Disrupting services from state parks to road construction risked further upsetting an already unsettled public.”


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