Another Deficit Looms in Michigan

By: Associated Press
By: Associated Press

One week into the new budget year, Governor Granholm is hinting that the state could face a $500 million deficit a year from now.

Granholm spokeswoman Liz Boyd stresses that the estimate for the 2005-2006 budget year is very preliminary.

Boyd says the governor will not propose raising the state sales tax, but will offer a “revenue neutral” plan to restructure business taxes.

Granholm and lawmakers erased a $1 billion deficit before the state's $39.7 billion budget took effect last Friday. The Granholm administration is expected to unveil its proposed budget for the next fiscal year around February.

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