Governor Issues Executive Order

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Governor Granholm issued an Executive Order Thursday in an attempt to fill a $900 million budget gap. In it, were $344 million worth of cuts.

The five departments facing the highest cuts are:

  • Higher Education - $73 million
  • Corrections - $67 million
  • Community Health - $33 million
  • Human Services - $29 million
  • Community Colleges - $29 million

    Some of the cuts proposed are strictly program cuts. Higher education and community colleges, for example, face delayed payments from the state. All state departments face a reduction in retirement rates, possibly a change in the way pension benefits are paid.

    Governor Granholm is the first to admit her Executive Order is not a complete solution. "Three-hundred-and-forty-four million dollars towards eliminating a $3.4 billion deficit reflects 10% of the solution," she said at a news conference Thursday, adding in the projected deficit for next year and what the state will lose once the Single Business Tax is eliminated. "Ten percent gets us a baby step toward resolving it," she said.

    Senate Majority Leader Mike Bishop, (R) Rochester, acknowledges the Executive Order is a product of two days worth of closed door negotiations, but says he is still concerned with the budget gap and they'll begin working on it right away.

    The Senate Appropriations Committee voted to approve the Executive Order Thursday afternoon. The Democrat controlled House still must vote for it before it takes effect.

    The Executive Order is posted on the Office of the State Budget's website:

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