Gov plan: tax amnesty, 3% spending cut

LANSING, Mich. (AP) - Gov. Jennifer Granholm proposes a tax amnesty and a 3 percent spending cut for state agencies to help erase deficits topping $780 million in Michigan's state budgets.

The Democratic governor detailed her latest proposals Wednesday. Many of the ideas would require agreement from state legislators.

One proposal is to take a portion of a surplus in the state's fund for public schools and use it to help community college budgets.

Granholm says Michigan faces a deficit of roughly $300 million for the current fiscal year. She says an additional shortfall of more than $480 million exists for the budget year starting Oct. 1.

There are no tax increases in the plan.