Lawmakers far apart on budget

Mark Hornbeck / Detroit News Lansing Bureau

Lansing -- Republicans and Democrats remain far apart on filling holes in the state budget two weeks into the fiscal year, Gov. Jennifer Granholm said Wednesday after a 70-minute meeting with Senate Republican Leader Mike Bishop.

The governor said Bishop gave no assurances the Senate would send the six remaining budgets it is holding or that the Senate will approve revenue increases to fully fund school aid, college scholarships, local police and fire and Medicaid.

"I have these priorities and he doesn't want to find a way to fund them," Granholm said.

Bishop, R-Rochester, said he will send the budget bills to Granholm's desk, possibly Thursday or Tuesday, but reiterated Senate Republicans have no intention of voting for tax increases.

"The Democrats are still pursuing tax increases that are unnecessary at this time; they're bad for Michigan," Bishop said. "We're going to stand strong."

Both leaders said there will be no government shutdown on Halloween night, when a temporary continuation budget expires.

The Legislature has passed all 15 department budget bills, but in a procedural move, the Senate is holding back six key bills. Bishop has said he's concerned the governor will veto major portions of the budget, setting back a deal he struck with House Speaker Andy Dillon, D-Redford Township. Granholm has promised vetoes, saying she was never a party to that agreement and it's her turn to have a crack at the budget.

The budget bills passed by lawmakers wipe out a $2.8 billion shortfall with budget cuts and federal stimulus money. Granholm has signed nine of the measures, some with line-item vetoes, including three more budgets Wednesday -- agriculture, natural resources and environmental quality.

The House and Senate have since passed legislation that would increase tax collections or reduce tax credits. The chambers have yet to agree on revenue bills, however.

mhornbeck@detnews.com (313) 222-2470