“Under five hours into a partial government shutdown, the state Legislature voted for a comprehensive plan to prevent massive cuts to education, public safety and health care,” Granholm said. “I am grateful to the Legislature and legislators who came together to craft a solution of cuts, reforms and revenues.”

Those cuts, reforms and revenues included raising the personal income tax rate to 4.35 percent, expanding the 6 percent sales tax to some services and reforming how teacher and state employee benefits are handled.

“Given the hand that we were dealt with a combination of cuts, reforms and revenues that the Legislature agreed upon, will allow us to move forward,” Granholm said.

Granholm signed off on a 30-day extension, or continuation budget, that allows the state to extend the current fiscal year until a complete budget is approved.

Of the $1.75 billion shortfall the state was facing, the Legislature will use the extension to make about $440 million in cuts, Granholm said.

“It’s going to be difficult, but it must be done,” she said.

It has yet to be determined if those cuts will affect the state’s universities and colleges.

The Legislature will spend the next 30 days going over budgets, including higher education, and determining what will be the next step, said Leslee Fritz, communication director in the Michigan Office of the State Budget.

Increasing tax rates and reforming health benefits for teachers were tough tasks for state legislators, Granholm said. Some legislators had received threats of being recalled in some districts.

The difficulty of the issues and fear of recalls prevented the Legislature from getting the job done, Granholm said. Term limits also created an atmosphere of distrust.

“I’m very angry at those on the fringes who would attack legislators who cast their votes to put Michigan on solid footing,” Granholm said. “I would ask citizens if you are approached with a petition trying to recall legislators who did cast a very tough vote for Michigan, that you say no.”

Granholm did reassure citizens that raising taxes was a last resort for the state Legislature, however, the state risked leaving citizens vulnerable if an all-cuts approach was taken.

“The income tax increase to 4.35 percent, which is where we were at in 1999, is temporary and will start to roll back in 2011,” Granholm said. “The rationale for the combination of services’ taxed was the Legislature, and I agreed we would go after the things that really were discretionary – that were extras.”

For now, the administration is not looking to add services to the sales tax list or look for further revenue.

“From what I can see this puts us on solid ground,” Granholm said. “I don’t see a need for any more general tax increases.”