Michigan's Budget Problems Revealed

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Michigan economists have detailed state government's financial problems.

Now debate about how to fix the situation will increase at the Capitol.

Fiscal analysts for the House and Senate, along with Governor Jennifer Granholm's administration, reached a consensus projection Thursday on revenues for the budget year that began in October.

They project revenues will fall more than $550 million short of what was forecast in May. Combined with increased spending pressures, that could push the projected deficit for this fiscal year to more than $800 million.

Granholm is expected to pitch her next budget plan in early February.