State Budget Talks

By: Tim Skubick
By: Tim Skubick

The Citizens Research Council of Michigan is telling News 10, the state will have another $900 million deficit next year. That means the governor and lawmakers will begin the New Year where they ended the old one, finding ways to slash state services to eradicate the red ink.

Tom Clay from the CRC says that could mean an average 20-percent reduction in all state departments and programs with the exception of corrections and the Medicaid fund.

The one bright spot in the bad economic news is there some expected new revenue. A four-percent increase in new money is expected to flow into state coffers but that is only $300 million, which is not enough to eliminate the $900 million shortfall.

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