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Politics & Government

Granholm signs first part of a budget deal

Governor Granholm has signed the first part of a budget deal that includes tapping the School Aid Fund to help retire a deficit. The bill shifts $208-million dollars from the schools fund and gives it to community colleges. That frees up funds to help eliminate about half of this year's budget shortfall. The governor and legislative leaders say it's a one-time measure that helps avert bigger cuts to critical services in the current fiscal year.

Liz Boyd is the governor's press secretary. She said, "The agreement that we've reached reflects our state's most-important priorities - creating jobs, educating children, and protecting citizens while building on the steps we've already taken over the past seven years to address the fiscal challenges brought on by the national recession and the struggles of the auto industry."

The Legislature will tackle the rest of the budget deal next week. It includes cuts to every state department in the coming fiscal year. The deadline for finishing work on the budgets is September 30th.