Granholm: smaller
budgets cuts possible

GRAND RAPIDS, Mich. (WOOD) - In this economic environment, even small victories are hard to come by, but Governor Granholm believes a significant stimulus package is on the way.

Granholm, in Philadelphia for the National Governors Association meeting, met with her fellow governors, plus President-elect Obama and Vice President-elect Biden. She was so positive the new stimulus will arrive when the Obama Administration takes over, it may change the way she trims the state's budget later this month.

"Because we think there will be a significant stimulus package, it may sort of lessen the the need right now to do immediate drastic cuts," she told 24 Hour News 8 in a mid-afternoon conference call. "We need to know what's coming in January before making decisions that might end up hurting Michigan and Michigan's economy."

Granholm said she will still have to cut state spending but the amount that she may have to cut may be reduced, and it could be reduced dramatically. Some estimates have ranged as high as $1 billion that would have to be cut.

The governor suggested it was less than half that, partially because, she said, revenues to the state have stayed surprisingly healthy.

Banking on that stimulus, Granholm said the coming executive order to cut the budget may be just a down payment while she and the state wait to see just how much cash could be flowing Michigan's way after January 20.