Granholm Calls for Sales Tax on Services and Major Cuts in Proposed Budget
Some stunning numbers as Governor Jennifer Granholm pitched her latest plan for Michigan's budget. The proposal she announced Thursday sets the state's priorities and attempts to close a big gap between what the state takes in and how much it plans to spend. As it stands now the state faces a gap of more than 1.5 billion dollars for the fiscal year that starts October first. The budget the governor proposed Thursday includes more than 566 million dollars in cuts It also calls for major structural change in sales tax by lowering the tax to 5.5 percent, but expanding it to services. All of the money would go to the school aid fund. 9&10's Ryan Raiche and Photojournalist Stephanie Adkins have more on the proposed plan and reaction from lawmakers.