LANSING – An agreement reached finally by Gov. Jennifer Granholm and Michigan legislative leaders will mean a budget that is $70 million more than the governor?s general fund proposal, but with no changes in taxes or major state fees. The package, however, means the state will securitize $1 billion in tobacco settlement fees, used to fund the Michigan Tri Corridor.
The budget will also mean a boost for the state’s universities as well as a victory for two Republican legislative higher education proposals: floor funding, wanted by the Senate GOP, and institution of a funding formula that House GOP members wanted.
While the budget agreement sets overall parameters for the departments, officials said a number of decisions will still be made by the conference committees, including decisions on co-pays that Medicaid recipients will have to pay.
“Despite our tremendous challenges, this budget ensures that funding for higher education, health care and services for our most vulnerable citizens are protected,” Granholm said in a joint statement with legislative leaders.
Because the House passed a single omnibus budget bill and the Senate passed a separate bill for each budget, the Legislature will use both methods to send a budget to. Granholm. The budgets that would have originated in the House will be rolled into one omnibus budget, while the budgets that would have originated in the Senate will be passed as separate budget bills.
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