Monday, May 14, 2007

Bishop says budget deal reached



... but no confirmation from the Democrats. From the Detroit News-



LANSING -- Legislative leaders have reached agreement on balancing this year's state budget that doesn't raise taxes but cuts the state aid that schools had expected by $36 per student, Senate Majority Leader Mike Bishop said today.



Bishop, R-Rochester, did not comment on other details or cuts contained in the budget agreement. But aides said most of the cutbacks approved by the Senate in March are in the accord. Those cuts included a 10 percent or $40 million reduction in revenue sharing with local governments, as well as reductions in community health programs, arts and cultural grants, and the Legislature's own spending.



Sounds like the Dems might have caved, but then again this is only one side of the story.



Matt Marsden, a spokesman for Bishop, said the deal was struck between Senate Republicans and House Democrats. But House Speaker Andy Dillon, D-Redford, declined to confirm that an agreement has been reached.



"The Speaker does not want to negotiate in the press. Discussions on resolving Michigan's budget crisis are ongoing," said Dan Farough, spokesman for Dillon.



Yes, God forbid that Dillon would want to get his two six cents into the press. Better to let Bishop get all the ink. That way, only Republican talking points get out to the public, and the Democrats are never heard from.



Maybe we should send Andy to the Craig DeRoche School of Media Relations- Craig never met a camera he didn't like.



The AP confirms this story, too, but they add that this "agreement" doesn't take into account the new numbers that will come out later this week.



But fixing the deficit in the budget year that ends Sept. 30 with spending cuts doesn't factor in the likelihood that state government economists on Friday will again lower their revenue projections because of Michigan's poor economy.



Mitch Bean, director of the nonpartisan House Fiscal Agency, estimated Monday that the state's school aid fund will fall another $80 million to $140 million short of earlier projections. The general fund, which pays for prisons, universities and other programs, could fall short by an extra $50 million to $100 million, Bean said.



"We won’t think about that now. We'll think about it tomorrow. After all, tomorrow is another day!", said the Republicans.

Bishop spokesman Matt Marsden acknowledged that a budget shortfall could re-emerge after Friday's revenue-estimating conference.



"It's possible. But we're dealing with the problems that are directly in front of us right now," he said. "We will cross that bridge when we get to it."



Bishop scheduled a conference committee meeting for Tuesday afternoon to sign an agreement. Both the GOP-controlled Senate and Democratic-led House have approved spending cuts, though they have clashed over cutting state payments to schools and to local communities for services such as police and fire.



Stay tuned...



UPDATE 8:37PM: Now we have Granholm and Dillon denying a deal has been reached.



In a joint statement, Granholm and Dillon noted that progress had been made but said no deal had been struck.



"No agreements have been reached on the 2007 general fund or School Aid fund budgets," they said, including whether to cut funding for K-12 schools.



At ease, soldier. Looks like Bishop just couldn't wait to run to the press and get his side of the story out. Wonder why Dillon let Mike's statement slide in the first place.



UPDATE 2 5:03AM: Bishop's office continues to insist that an agreement has been reached.



Matt Marsden, a spokesman for Bishop, told of the statement by Granholm and Dillon, insisted that there is indeed an agreement. "We're not real clear what they're referring to when they say there is no deal."



Why would they do that? Probably so they say this...



"We intend to sign the conference committee report as early as (Tuesday) that will balance the 2007 budget without a tax increase on Michigan citizens," Bishop said in a statement.



... even though the budget will be out of balance again as early as this Friday.



Is seems as if the Republicans are lying about this agreement so they can continue to claim they balanced the budget without raising taxes (they haven't) and put the blame back on Granholm and the Democrats if this falls through. Or, someone did agree to something without the backing of someone else and Bishop ran with it.



Something strange going on here.