MichiganRadio

Granholm Continues Push for School Revenues DETROIT, MI (Michigan Radio) - Governor Granholm says she will sign legislation to use federal stimulus money to shore up the K-12 budget if it reaches her desk. But she says she still prefers her own plan for raising revenue. That includes scaling back tax loopholes for some businesses, and extending the cigarette tax to include loose tobacco and small flavored cigars.

"So my request to the Legislature is that they use that fund - the Recovery Act fund - for for next year, when we face an enormous cliff, and we still have deep cuts to make, and not kick the can down the road," she said.

Granholm has put schools on notice that they will see about a $300 per-student cut unless the Legislature plugs a hole in the school aid fund.

The Republican-controlled Senate says there is no budget hole. A spokesman says the Senate has already approved legislation that would raise money through a freeze in the tax credit for low-income wage earners and scaling back a tax credits for filmmakers.

Contact SArah Hulett at sarahhu@umich.edu © Copyright 2012, Michigan Radio