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Michigan faces state shutdown

LANSING, Mich., Sept. 30 (UPI) -- Michigan lawmakers braced for rugged debate Sunday to forge a budget solution and prevent a shutdown of state government.

On the table were two controversial tax increases and legislation to reform health care benefits for teachers, The Detroit News reported.

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The health care reform, described as key to ending Michigan's budget crisis, was approved by a special panel around 2 a.m. Sunday and sent to the Senate for a vote the same day, The News reported.

The plan would let school districts and municipalities create insurance pools and take bids from private insurers. Republican supporters called the plan historic, while Democratic opponents were skeptical it would lead to significant savings.

Early Sunday, the Democratic-led House also approved a Republican bill to give people on Medicaid cheaper co-pays for leading healthier lifestyles, The Detroit Free Press reported.

Michigan faces a $1.75 billion budget shortfall for the fiscal year that begins Monday.

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