State Budget Talks

State lawmakers are being asked to hike the cigarette and liquor taxes as part of the governor's new budget released at the capitol Thursday. The governor also wants lawmakers to close one state prison, hold the line on K-12 spending at $6700 per student and she tells Michigan cities she does not want to slice revenue sharing.

Gov. Jennifer Granholm's spending outline now goes to the legislature for more review. Faced with a billion dollar deficit starting next October the governor tells lawmakers this is a lean budget, but she is hoping for better economic times as the year 2004 unfolds.