Granholm Says Schools, Medicaid Face Budget Cuts Soon

LANSING, Mich. -- Gov. Jennifer Granholm tried to put pressure on state Senate Republicans Thursday, saying she will cut school funding and Medicaid reimbursements this summer unless they quickly agree to a tax increase.

Senate Republicans responded that Granholm is moving prematurely and more harshly than may be necessary, given what is known for sure about the state's budget problems.

Granholm said she will send a letter to school districts Monday informing them that state aid will be cut by $125 per pupil. The cuts would take effect in 30 days unless the Legislature agrees to a tax increase or comes up with an alternative plan to avoid cuts.

"The clock is ticking," Granholm said at a meeting of school board members and administrators from across the state in downtown Lansing.

Granholm said she was angry about the cuts and that it was "ridiculous" to have to make them at this point of a fiscal year that began in October.

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