Michigan Bracing for Enormous Money Shortage

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Michigan Governor-Elect Jennifer Granholm is describing the state's budget deficit as "enormous" and "astronomical" and is warning about massive budget cuts.

The state's deficit is now pegged at $1.8 billion. Governor Elect Granholm's top budget advisor expects that to climb to $2 billion. The options are to cut services, raise taxes or both. Or a spurt of economic growth could ease the budget pain.

Ms. Granholm continues to insist a tax hike is a last resort.