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Michigan faces tax shortage

April 3, 2009 at 2:22 PM

LANSING, Mich., April 3 (UPI) -- Michigan Gov. Jennifer Granholm is seeking meetings with legislative leaders after experts said state tax collections are falling short by $100 million a month.

Economists said the shortages are putting the state in increased danger of budget cuts, The Detroit Free Press reported Friday.

Granholm said she is seeking to hold meetings with state lawmakers within the next two weeks to determine a solution.

Bob Emerson, the state budget director, said the solution will likely involve both budget cuts and federal stimulus money, which he said officials had hoped not to use.

Experts said budget cuts would likely affect prisons, revenue sharing, employee pay, benefits and welfare payments.

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