Republicans try to balance Mich. budget without tax increases; university funding would be cut

Republicans target cuts for Michigan state budget

LANSING, Mich. — Republicans in the Michigan Legislature moved ahead Tuesday with proposals to balance the state budget without tax increases, opting instead to cut funding for universities and community colleges by 3.1 percent.

The Republican-led state Senate voted 21-16 mostly along party lines to cut aid to the community colleges. The university budget passed 20-17. Both bills go next to the Democrat-led House.

Tuesday’s votes are among the first in what likely will be a lengthy budget fight between the Senate, House and Democratic Gov. Jennifer Granholm. They’re trying to erase a projected $1.7 billion deficit in the budget year starting Oct. 1.

Much of the Republican plan runs counter to what Granholm proposed earlier this year. She wants to slightly lower Michigan’s sales tax rate but expand it to dozens of services that aren’t now taxed, raising more than $500 million in new revenue.

Republicans say they won’t go along with that part of the plan.

“The public is not tolerant of a tax increase right now,” said Rep. Kevin Elsenheimer, the House Republican leader.

Republicans want to eliminate a 3 percent pay raise for unionized state workers scheduled for October. But so far they haven’t mustered the votes needed to rescind it.

House Republicans would cut spending across all state departments by about $665 million. Other money would be saved by privatizing some prison services such as food service and changing welfare eligibility or benefits.

The House Republicans would increase per-student grants going to Michigan schools by $18.50, which would come after a cut of $165 per student in the current budget year. But money specifically allocated for certain at-risk student and other programs would be reduced, along with grants for districts with declining enrollment. Overall, the House Republican plan would give schools more flexibility on how money from the state is spent.

Republicans appear largely unified in cutting university and community college funding, although many Democrats are opposed. Community colleges are increasing enrollment as Michigan moves to retrain workers during the economic downturn.

“Our community colleges are growing and they are more vital to our economy than ever before,” said Sen. Irma Clark-Coleman, D-Detroit. “We should not be cutting them now.”

Students are concerned that a cut in state aid will lead to higher tuition increases headed into next fall.

The Senate also approved a prisons spending bill Tuesday that does not include the early release of thousands of inmates for good behavior. Granholm has proposed the early releases to try to cut corrections spending.