Governor Granholm’s State Budget Proposal
Governor Granholm presented her 2010-2011 budget proposal in Lansing Thursday. The Governor is proposing the state sales tax be extended to consumer services and the rate dropped from 6.0% to 5.5%. The roughly $550-million raised by the change would go to public education, then gradually shift toward decreasing business taxes. The sales tax wouldn't apply to health care and social assistance, education, new construction, real estate and insurance commissions and services directly connected to business operations. Governor Granholm is also proposing budget cuts including requiring teachers and state employees to pay 3% toward their pensions and 20 % of their health care premiums. The budget restores the Michigan Promise as a tax credit but would only cover graduates who stay in Michigan for at least a year after they complete their degree. For a transcript of the budget proposal clink on the link below.