LANSING – Talks between Michigan House Speaker Craig DeRoche (R-Novi), Senate Majority Leader Ken Sikkema (R-Wyoming) and Gov. Jennifer Granholm kicked off Tuesday as the House postponed voting on a series of bills that would use the state’s tobacco settlement money for business tax cuts and investment in high-tech jobs.

The Michigan House has proposed taking $700 million of the $1 billion raised by securitizing a portion of the state’s tobacco settlement and using it to cut taxes, particulary taxes for Michigan’s hard pressed manufacturing sector. Only $300 million would be used to fund technology start ups, primarily those in life sciences. Granholm had proposed the entire $1 billion be earmarked to fund technology companies, which will provide the jobs of the 21st century.

In speaking with reporters, DeRoche said that all parties involved agree a resolution is needed quickly. Although what type of resolution of the issue is still in question.

“The House has a strong belief that the manufacturing sector needs immediate and substantial relief,” DeRoche said.

DeRoche remained hopeful that an agreement can be reached for vote as early as Thursday by the House, but said an agreement would not be required for a House vote on the issue.

“By pausing now for the fourth time at the request of others, it shows our commitment to others,” DeRoche said. “While we think this plan is the right solution, we need to hear their input. All parties agree there needs to be a resolution.”

Granholm’s spokesperson Liz Boyd said that the governor believes in restructuring business taxes and investing in future high-tech jobs. However, how those issues will be resolved is still a question as talks are continuing.

“This is a process the governor started in January,” Boyd said. “All the parties are meeting with the governor. We believe there is willingness on the part of the Legislature. We’re hopeful to have an agreement soon.”

The House will be in session on Wednesday, although with the funeral service for civil rights leader Rosa Parks scheduled and several representatives with excused absences, no record roll call votes will be taken. Only bills on second reading will be addressed, said Matt Resch, spokesperson for DeRoche. The Senate as well will only move bills to third reading and take no roll call votes on Wednesday.

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