January 12, 2005

Shortfall of at least $1 billion expected this year and next

Fresh and eager, three dozen new House members join the 93rd Legislature today and already they\'re looking down another deep financial hole. Without more cost-cutting or more revenue, the state faces a combined deficit of perhaps $1 billion this year and next, according to fiscal experts. Money holes are nothing new for Gov. Jennifer Granholm, who wrestled with similar shortfalls during her first two years in office and promises to do it once again without raising general taxes...Adding to this year\'s fiscal debate are education lobbyists who will pressure lawmakers to guarantee a level of funding for schools before they pay for the rest of state government.The K-16 Coalition will steer clear of calling for a tax increase. But Al Short, chief lobbyist for the Michigan Education Association, said with demands on state services and resistance to higher taxes, something has to give. \"The current revenue picture can\'t provide for current services,\" Short said. \"We don\'t have fewer prisoners than three years ago, we don\'t have less demands on the Medicaid budget. We have more students in colleges and universities, there\'s constant pressure for good highways and safe streets.\"

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