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Granholm to outline budget

Lawmakers expect liquor, cigarette taxes to be included

Legislators who've been briefed about Gov. Jennifer Granholm's proposed 2004-05 budget say the governor's plan will be a mixture of budget-saving measures.

Lawmakers have been aware of a possible $1 billion state budget deficit and say they are expecting the governor's budget to be balanced without ordering harsh cuts.

"From what I've heard, it sounds like the governor has it laid out in thirds," Sen. Virg Bernero, D-Lansing, said of the budget proposal to be announced today. "One third to revenue enhancements, one third transfers and technical stuff, and one third cuts."

"Revenue enhancements" could include increasing taxes on cigarettes and liquor.

"(The proposal) has been talked about a lot," said Rep. Howard Walker, R-Traverse City, who sits on the appropriations committee. "That will definitely generate a lot of discussion."

Some students say proposing "sin taxes" is a counterproductive move by the governor.

"I don't think it will have the positive impact they are looking for," said Jason Jurcak, a civil engineering sophomore. "It's a cheap ploy to use against people that have a bad habit."

But Abigail Morris, a biochemistry sophomore, said taxing liquor could be effective during rough budget times.

"Alcohol is a luxury item," she said. "It's better than raising the sales tax or going after some other item that we actually need."

According to legislators, Granholm's budget also is expected to touch on the "tuition pledge" she has been offering to the state's public universities. If a university agrees not to raise tuition past the rate of inflation - 2.4 percent - the Legislature will have no further cuts for the next fiscal year and will reduce higher education cuts from 5 percent to 2 percent for this year.

Mary Dettloff, a spokeswoman for Granholm, declined to discuss specifics about the budget until after the proposal is unveiled.

"The governor always proposes a rather conservative budget so we don't have to make midyear cuts," she said. "Our revenue estimates are always higher than what we actually receive."

Appropriations committee Majority Vice-Chair Judy Emmons, R-Sheridan, said she is hoping for a budget that will cut as few services as possible.

"I know, as far as cuts to programs, (some departments) will have to find ways to reduce their budget and expenses, but I can't tell you what exactly," she said.

"At this point, I wouldn't say anything is safe."

Staff writer Maggie Bernardi contributed to this report.

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