State Shutdown Threatened in Michigan
Published: 9/28/07, 2:28 AM EDT
LANSING, Mich. (AP) - Legislative leaders and the governor negotiated into early Friday over a temporary state budget and possible tax increases, hoping to avoid a government shutdown next week.
The new fiscal year begins Monday, but the budget legislation has yet to pass and officials haven't resolved a projected $1.75 billion shortfall.
Negotiations in the Republican-led Senate and Democrat-led House broke around 1 a.m. Friday but were expected to reconvene at 1 p.m.
Democratic Gov. Jennifer Granholm wants an agreement to raise taxes before she signs a temporary budget, but neither the Republican-led Senate nor the Democrat-led House has agreed to tax hikes.
Without a temporary budget, essential services such as prisons and police would be kept running, but some offices would be closed.
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