Granholm preparing revised budget plan

LANSING, Mich. (AP) - Gov. Jennifer Granholm remains hopeful Michigan will get extended Medicaid funding from the federal government but she's preparing alternative budget plans in case the money doesn't materialize.

Granholm said Thursday the plan would include new revenues for state government. She wouldn't specify where the money would come from during a media briefing at the state Capitol.

Previous plans to extend the state's sales tax to some services or eliminate some types of tax exemptions have not gained support in the state Legislature.

Michigan was counting on more than $500 million in extended federal Medicaid benefits for the budget year starting Oct. 1. Granholm said Thursday that if Michigan gets any money at all it would be about $300 million.