March 22, 2007

LANSING - On behalf of Governor Jennifer M. Granholm, State Budget Director Bob Emerson today presented Executive Order 2007-3 to a joint session of the House and Senate Appropriations Committees that brings the state one step closer to balancing spending in the current fiscal year.  The executive order (EO) will reduce total spending in the 2007 fiscal year by $344.6 million, of which $274.2 million is general fund. 
 
"While this is a good first step, we have solved about 10 percent of our $3 billion budget crisis - we are far from done with our work," said Governor Granholm.  "With today's action, we are making difficult cuts to state government but going forward, we will not accept drastic cuts that will devastate education, health care and public safety.  I pledge to work with the Legislature toward a comprehensive solution that makes Michigan competitive and invests in our future."   
Prior to approval of an EO, the combined shortfall in the general fund and School Aid Fund is $942 million for the current fiscal year.  Of that total, $377 million is from the School Aid Fund.  
 
Some example programs cut in the EO are:  cash assistance payments, indigent burial, economic development job training grants, and transportation funds for bus capital and rail passenger services.