December 29, 2008
State Budgets: Michigan Shutters Prison But Continues Credits and Subsidies to Favored Businesses
by Joseph Henchman
Lawmakers have approved $134 million in cuts recommended by Gov. Jennifer Granholm (D), including closing one prison. The shortfall now stands at somewhere around $106 million (as estimated by Granholm) to $266 million (legislative estimate), out of the state's $9.7 billion budget. Granholm opposes new taxes, having raised the income tax in 2007. Nevertheless, Michigan remains at the forefront of using tax policy to pick winners and losers, with $105 million in new credits announced in mid-December, along with $335 million in support for the auto industry and $80 million in tax rebates provided to film production companies.
More on Michigan here.
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