TAX TROUBLES LANSING, MICH. (AP) (wgvu) - TEMPERS AND FRUSTRATIONS ARE BOILING OVER
WITH THE STATE GOVERNMENT'S NEW FISCAL YEAR STARTING IN THREE WEEKS
AND NO TAX INCREASE OR BALANCED BUDGET IN PLACE.
SOME GOVERNMENT SERVICES COULD SHUT DOWN OCTOBER FIRST IF NO
DEAL IS STRUCK BY SEPTEMBER 30TH. TALKS HAVE BROKEN DOWN IN
LANSING, AND THE REPUBLICANS AND DEMOCRATS ARE BLAMING EACH OTHER
FOR THE STALEMATE.
HIGHER TAXES APPEAR INEVITABLE DESPITE THE BICKERING. THE STATE
IS FACING A $1.75 BILLION DEFICIT IF GOVERNOR GRANHOLM'S PROPOSED
BUDGET IS ENACTED. AT LEAST $1 BILLION OF EXTRA REVENUE IS NEEDED
EVEN WITH SPENDING REDUCTIONS.

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