Engler Budget Cuts Approved

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Gov. John Engler snatched victory from the legislative jaws of defeat as he got a $340 million cut out of state services in order to balance the budget.

At first Senate Democrats and Republicans rejected the so called executive order, but then the governor got three of the no votes to change to yes. As a result state universities will lose $53 million, cities will lose $53 million and the rest of state government will take a 3.5 percent across the board reduction.

The governor also beat back effort to stall a scheduled rollback in the state income tax rate. The reduction will take effect Jan. 1.