Michigan lawmakers keep working on state budget; amnesty and retirement plans not done

Lawmakers keep working on Michigan state budget

LANSING, Mich. — Michigan lawmakers approved some pieces of the next state budget Thursday, but so far haven’t completed tax amnesty and state employee retirement incentive plans that are supposed to be approved before Oct. 1.

Legislators are working to eliminate a projected $484 million budget deficit for the upcoming fiscal year without tax increases. Public schools should be safe from further budget cuts, but other departments will face reductions.

A tax amnesty plan could raise more than $60 million, depending on how it’s crafted. The retirement incentive package for state workers could generate $60 million in its first year. Both are part of a tentative deal reached by Democratic Gov. Jennifer Granholm’s administration, Democratic House Speaker Andy Dillon and Republican Senate Majority Leader Mike Bishop.

Lawmakers adjourned for the week without final votes on the proposals but still have time to beat the budget deadline.

Many House Democrats are critical of the retirement incentive package, and some union leaders oppose it. They say the plan hurts workers who would stay on the job because they would be required to contribute more to retiree health plans.

Democratic lawmakers also don’t like the alternative if the retirement plan doesn’t pass. They’ll be asked to cut tax revenue-sharing payments that go to local governments to help pay for services such as police and fire departments.

Other pieces of the budget plan are advancing. The Democratic-led House passed a measure by a 60-43 vote mostly along party lines Thursday to speed up and change how the state accounts for unclaimed property. It could add more than $150 million to state’s books for the next fiscal year.

The proposal now goes to the Republican-led Senate.