Budget Impasse Continues in Lansing

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Governor Granholm's plan to slice $275 million from state services has been endorsed by House Republicans but rejected by Republicans in the state Senate, sending the issue back to the drawing board.

The key disagreement between Republicans was a plan to restore $30 million to Michigan State and 14 other universities and junior colleges. The governor backed off her demand to impose the cut, and the house GOP agreed to restore the funds with future surpluses or money left over at the end of the year.

The Senate GOP argued that was unacceptable, calling it "smoke and mirrors."

"We want the money up front," says Senate Majority Leader Ken Sikkema.