Granholm signs temporary budget bill

LANSING, Mich. (WOOD) - Michigan lawmakers missed a midnight Wednesday deadline to balance the state's budget by eliminating a projected $2.8 billion deficit, opting instead for an interim one-month budget.

The Legislature had been moving toward that goal without tax increases, opting instead for cuts and the use of federal stimulus money. But a full-year plan was out of reach after a standstill on the most contentious cuts.

A status report:

INTERIM BUDGET: Both the Democratic-led House and Republican-led Senate passed a temporary budget that buys more time to pass a yearlong plan. The Senate gave an interim bill immediate effect at 1:47 a.m. Thursday so the legislation could go to Democratic Gov. Jennifer Granholm. Governor Granholm has since signed the temporary budget bill, making the interim budget effective for the next 30 days.

COLLEGE SCHOLARSHIPS: The Legislature has voted to eliminate funding for the Michigan Promise scholarship. About 96,000 college students expected to get $1,000 this academic year under the program that gives them up to $4,000 for college. The House passed a separate bill to restore the program with $120 million, but it identifies no funding source -- making it unlikely to pass the Senate.

K-12 SCHOOLS: Schools would lose the equivalent of $218 per student under a proposal that had not passed either chamber. Some lawmakers want to lessen that cut by spending some stimulus money that is supposed to be saved for the 2011 fiscal year. 

POLICE AND FIRE SERVICES: Tax revenue-sharing payments that help local governments pay for public safety and other programs would be cut by 11 percent under a bill passed by the Senate and House. A separate measure passed by the House would provide nearly $74 million to restore most of the cut, but also identified no funding source.

HEALTH CARE: The Department of Community Health budget approved by the House and Senate would cut Medicaid reimbursement rates to doctors and other providers by 8 percent. The House passed a separate bill that would provide nearly $32 million to lessen the cuts, but no funding source was specified.

LIBRARIES: Both the House and Senate voted to cut aid to local libraries by $4 million, or 40 percent. A House bill would restore the money but no revenue source was identified.

PRISONS: Both chambers approved a plan that would carry out previously announced prison and camp closings. Some food services could be contracted out to private bidders. Parole funding would be increased because more prisoners are being released after completing their minimum sentences.

STATE POLICE: A budget that would provide some funding for the Michigan State Police to move into a new Lansing headquarters was approved by the Senate and House.

CONSERVATION: The state's wetland protections program would stay intact under a bill that has passed both chambers. Granholm had recommended transferring the program to the federal government to save about $2 million annually.

WELFARE/HUMAN SERVICES: The Legislature used one-time federal money -- which may not be available in the future -- to avoid proposed cuts to Michigan's funding for welfare recipients.

COMMUNITY COLLEGES: A bill sparing community colleges from big cuts passed both chambers. Lawmakers did not have much flexibility because of rules associated with receiving federal stimulus money.

TRANSPORTATION: The Legislature passed a bill cutting about $10 million to public transportation including Amtrak. It limits the amount set aside for the Detroit River International Crossing to $2.5 million and bans any activities committing the state to building a new public Canada-U.S. bridge in addition to the private one already there.

AGRICULTURE: Both chambers passed a bill trimming 14 percent from a program that donates fruits and vegetables to the hungry. Horse racing programs would get 19 percent less funding. 

COURTS: The Legislature has approved a budget that cuts funding for mental health court pilot programs and restricts out-of-state travel for judicial branch employees.

LABOR: The Legislature has passed a bill that cuts the state's Department of Energy, Labor and Economic Growth by about 20 percent. Much of that likely will be replaced by federal stimulus cash, including money for the state's No Worker Left Behind job retraining program.

MILITARY/VETERANS AFFAIRS: Both chambers voted to cut $1 million, or 25 percent, of funding for the American Legion and other veterans' service organizations that help them file claims for pension and disability benefits.