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Democrats and Republicans debate budget

September 23, 2007

“No real progress.”

After a weekend of little movement and a failed vote on an income tax increase Thursday night, those were the words of Phyllis Washburn, spokeswoman for House Minority Leader Craig DeRoche, R-Novi.

Both the House and Senate are facing a Thursday deadline for submitting a budget in time for Oct. 1, the beginning of the new fiscal year. However, neither chambers nor partisan groups have come to a consensus.

“I’m sure both sides of the aisle have been receiving communication from their constituents because they want to see funding for health care and public safety protected,” said Greg Bird, spokesman for House Majority Leader Andy Dillon, D-Redford. “Unfortunately, the Republicans, once again, are wanting to slash those services and lead us to a government shutdown.”

Some House Republicans believe last week’s bill could not pass because Democrats were afraid to vote for an increase, fearing recalls, Washburn said.

“The speaker backed out of the deal when we were one vote shy,” she said.

The state, in the meantime, is facing a $1.75 billion shortfall. A personal income tax increase from 3.9 percent to 4.6 percent could raise about $1.1 billion in revenue.

Michigan’s Senate did approve a continuation budget which would extend Michigan’s current budget year by 30 days, giving legislators more time to solve the crisis. However, Gov. Jennifer Granholm said she would not sign a continuation budget, as she and Democrats feel the budget issue should not be put off any longer.

As of press time Sunday night, no decision had been made on the income tax increase, however the House did vote for a number of fee extensions for the environment, trade and law enforcement. No new fees were introduced and none were increased, but the bills allow the state to continue to collect them.

The Associated Press contributed to this story.

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