Granholm, Dillon Refuse to Sign on to Three-Day Solution to Budget Crisis

Contact: Liz Boyd 517-335-6397

May 15, 2007

Fight for public schools, long-term stability continues

LANSING - Governor Jennifer M. Granholm and Speaker Andy Dillon today said they are committed to protecting kids and schools from draconian budget cuts this late in the school year and urged Senate Republicans to continue working on a comprehensive solution to the budget crisis facing the state. 

"We have been meeting for weeks in an attempt to reach an agreement on the current year's budget deficit, and while we have not completed our work, we have made progress," Granholm and Dillon said.  "We continue to push for a reasonable solution to our budget crisis that includes cuts, government reform, and revenue.  We cannot cut our way out of this crisis, and we must make Michigan competitive, we must invest in the things that make Michigan great."

The governor and speaker noted that while they are willing to compromise - and have compromised on cuts and reforms - the Senate Majority Leader has been unwilling to finalize an agreement on revenue.  A cuts-only solution not only fails to solve the shortfall in the School Aid Fund, it solves the general fund shortfall only until Friday when the state's 2007 general fund budget deficit is expected to grow because of revenue shortfalls and spending pressures.  The general fund deficit is expected to grow from $337 million to about $500 million, making the entire budget deficit over $700 million.

"We are committed to a comprehensive solution that guarantees long-term stability for our state," Granholm and Dillon added.  "We are not willing to sign on to a three-day solution that puts us back to square-one on Friday.  We encourage Senator Bishop to meet with us in the morning, as scheduled, and to continue meeting until a resolution is reached." 

Budget Background from the Governor's Office is attached.

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Background from Governor's Office PDF icon