With just over three weeks to finalize the FY 2011 budget, legislative leaders and the Granholm administration have reached a tentative — and broad — agreement on how to close a projected $484 million deficit. The Detroit News reports:
The deal, hammered out today between Senate Majority Leader Mike Bishop, R-Rochester, House Speaker Andy Dillon, D-Redford Township, and State Budget Director Bob Emerson, would include a 3 percent cut in the budgets for all state departments, as proposed by Gov. Jennifer Granholm.
It also would include: a tax amnesty program; an early retirement program for state workers; changes to the state’s liquor laws, though details weren’t known Tuesday; changes to the state’s unclaimed property law, allowing the state to take possession of property earlier; and refinancing of some state bonds to take advantage of more favorable interest rates.
This is generally in line with a proposal by Gov. Granholm a few weeks ago, though she also proposed an additional $50 million cut for several departments on top of the 3 percent across-the-board cuts. More details are expected to be announced Wednesday.