Michigan Governments Briefly Shuts Down - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

Michigan Governments Briefly Shuts Down

LANSING -- A little over four hours after it began at midnight, a partial state shutdown in Michigan has ended.

Governor Jennifer Granholm ordered state workers to report as usual on Monday after reaching agreement with the state legislature on what's being hailed as a historic budget deal.

For the few hours into the new fiscal year without an agreement, there were fewer state police on Michigan highways. State campgrounds were closed. Road construction stopped. And lottery sales ceased.

The deal was greeted by applause in the governor's office when the final vote was announced shortly after 4 a.m. on Monday. 

The deal includes includes a higher income tax and will expand the state sales tax to some services. Those tax hikes will be accompanied by $440 million in spending cuts to plug a $1.75 billion budget hole.

The governor says the result heads off massive cuts to education, health care and public safety and puts Michigan back on "solid financial footing." She says that will let the state concentrate on jump-starting the economy and creating new jobs.

(Copyright 2007 by The Associated Press.  All Rights Reserved.)

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