Governor Granholm met with key Republican and Democratic leaders behind closed doors much of the day Tuesday.
This after the Republican controlled Senate shot down her budget balancing ideas and she asked them to come up with their own. The Republicans have said they don't like her idea of a two percent tax on services.
The Governor made a brief statement to the media late in the afternoon. She says progress is being made but all involved have agreed to negotiate in private. She says they have reached agreements.
The Governor, the Speaker of the House and the Senate Majority Leader will meet again tomorrow morning.