Budget Deal Reached To Eliminate Budget Deficit

LANSING – Governor Jennifer M. Granholm, Senate Majority Leader Ken Sikkema, and Speaker of the House Rick Johnson today announced that they have reached an agreement to eliminate a $920 million deficit in the 2004 fiscal year budget.

“This bipartisan deal is a fair compromise that will allow us to minimize the cuts to education and the social safety net while allowing businesses to provide health care to their employees at a lower cost,” said Granholm. “This is a victory for the families of this state who depend on the essential services that are preserved within this deal. I applaud the Legislature for their willingness to protect the priorities of Michigan’s citizens.”

Terms of the agreement include a six-month pause in the income tax rollback with the money to be used to offset the shortfalls in the School Aid Fund, payments to local units of government, and institutions of higher learning. Also included in the deal is an additional $12 million in administrative cuts to state government spending as well as a four-year phase-in of the health care tax deduction for businesses.

Yea! for my Governor. WTG Jennifer. Get them piggy Republicans.