News (AP) - Lawmakers continue review of Granholm budget plan

LANSING (AP) -- Key parts of Democratic Gov. Jennifer Granholm's latest state budget proposal appear to be fairly well-received by legislative leaders.

Democratic House Speaker Andy Dillon said last Thursday a plan to take about $200 million of a projected surplus from the state's school aid fund and spend it on community colleges is "more palatable" now.

He says that's because Michigan is getting more than $300 million in unexpected federal schools aid.

Dillon had opposed using the school aid fund surplus for other purposes before Congress approved the extra money this month.

Lawmakers and Granholm are trying to erase a deficit of $302 million this fiscal year and a shortfall of $484 million for the year that begins Oct. 1.

Published: Mon, Aug 23, 2010

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