Michigan budget averts state shutdown

LANSING, Mich., Oct. 1 (UPI) -- Michigan narrowly averted a shutdown of services Monday when a contentious budget with expanded taxes was approved before dawn.

The state faces a $1.75 billion budget shortfall for the fiscal year that began Monday and the Senate was deadlocked 19-19 over raising the 3.9 percent income tax rate to 4.35 percent and instituting cost-cutting measures, the Detroit Free Press reported. Democrat Lt. Gov. John Cherry cast the deciding vote to break the tie at 4 a.m., the newspaper said.

However, the move only created a 30-day interim budget to prevent a disruption of state services and the legislature will return to craft a permanent one to balance the 2007-08 budget.

House Minority Leader Craig DeRoche, R-Novi, told the newspaper he was unhappy with the measure that took 17 long days to create.

"This is one of the largest spending sprees in Michigan history -- it is a 10 percent increase in the size of the bureaucracy," he said.