Gov. John Engler will present Michigan’s budget Thursday to a joint session of the state Senate and House appropriations committees.

The budget is expected to reflect current economic slowdown, featuring fewer tax cuts than in previous years and a monetary increase far less than the rate of inflation.

The budget is a proposal for the budget period of Oct. 1 to Sept. 31, 2002.

“I think we assumed that there wasn’t going to be much money for this budget,” state Sen. Robert Emerson, D-Flint, said.

Emerson served on the Senate Appropriations Committee before being elected Democratic floor leader last week.

“We’re dealing with tax cuts that went into effect two years ago,” he said.

While Engler has touted his record of 31 tax cuts during his time as Michigan governor, the only tax cut he hopes to achieve in the newest budget is a lowering of the single-business tax, a move he hopes will bring high-tech businesses to Michigan.

With the loss of automotive jobs at DaimlerChrysler, Engler hopes that such a move will prevent any big economic crises from affecting Michigan.

While previous tax cuts will not be touched and plans for improvements in Michigan education funds are expected to remain, money for any new plans is not available.

Other than the tax cut, no new proposals that would cost Michigan money were presented at Engler’s 11th annual State of the State address Wednesday. With his record of tax cuts and the economy currently slowing, some predict Michigan lawmakers will be more conservative with their spending.

“They’ve already had to lower their budget plans,” said Bill Ballenger, editor and publisher of the Lansing-based newsletter Inside Michigan Politics.

“I think it’s a combination of the (economic slowdown and previous tax cuts). If the economy starts to slow, the combination of the two are deadly. It’s going to be a very tight budget.”

Before the budget is signed by Engler, both committees will examine a state fiscal analysis two times, one of which already took place in January, and another scheduled for May.

Both will be used to examine the economic status of Michigan to provide a better state fiscal plan. Engler hopes to have signed a budget plan by mid-summer.

The state Senate and House appropriations committees must approve any budget that will be put into effect.

Although past budget discussions have included heated arguments and unnecessary attachments to proposals, some hope that the current air of bipartisan cooperation will prove beneficial to the process.

“I think it depends on what budget you’re talking about,” state Rep. Sandy Caul, R-Mt. Pleasant said.

Caul currently serves on the House Appropriations Committee.

“I think last year we had a great sense of cooperation in the process,” she said. “I think there’s a real plus on cooperation - we can get through the process.”