Sunday, September 30, 2007

Next up: income tax

update 9:28pm: (by Z, WK sorry to jack your diary, thought this was the best place)  From MIRS


"The conference report on HB 5195, legislation that would raise the state's income tax rate to 4.35 percent as part of a three-legged deal that is slowly limping through the Legislature, was reported moments ago in the House Appropriations Committee room."


...


Remaining components of the so-called deal reached to resolve the budget impasse include:


- Final passage of MESSA pooling reform legislation

- Final chamber action on the Income Tax conference report

- Senate action on HB 5198 sales tax on services component


From MIRS-


The next step toward possibly averting a shutdown of state government beginning Monday will apparently be a votes on an income tax hike (HB 5195). A version is expected to move out of confrerence committee any minute. Apparently the Senate has figured out how it will pass the bill, but it's less clear in the House.


Earlier this evening the House passed the continuation budget (SB 772 and SB 773), tie-barred to a pick-your-poison array of either a sales tax extension on higher end services (HB 5198), so-called loophole closings, or an income tax hike. It would appear the move toward the continuation budget was the result of the House's failure to move the MESSA reforms.


The plan now appears to be to get the continuation budget to the desk of Gov. Jennifer GRANHOLM with at least some of the revenues she demanded and then work out something on an overall budget package as the week plays out.


The Senate has figured it out? Good deal.


Anyone notice the MIRS bias up above? Points if you do!


The continuation is tied to everything else, so I'm not sure how she could possibly sign "some" of it. From the News-


The continuation budget, if approved by the Senate and signed by Gov. Jennifer Granholm, would allow the state to spend money into October while budget talks continue. But the bill is linked to 17 other pieces of legislation, so avoidance of a closure was not yet assured late today. A linchpin in the overall agreement for Republicans -- reform of teacher health insurance -- had not passed the House.


The state Senate was to take up the emergency budget and service tax bills later in the evening.


"The votes have to be there. The House has stepped up to the plate. It's our turn," said Senate Democratic Leader Mark Schauer of Battle Creek.


"Later in the evening". OK, you've got three hours and 11 minutes. Go to it.


(At 9:05- both bodies are "at ease". Probably a pretty uneasy ease at that)