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Stalled federal bill could hurt Michigan budget

By AP

LANSING, MI –

Michigan's state government budget problems could become significantly worse if a federal spending bill stalled in Congress doesn't pass.

Democratic Gov. Jennifer Granholm said Friday the effects would be "devastating" in Michigan if the bill doesn't pass and the state has to make further budget cuts.

A federal spending measure that would extend a Medicaid match program is worth more than $500 million to Michigan's upcoming budget. Spending plans from Granholm, Democrats who control the state House and Republicans who run the state Senate all are counting on that money.

Thousands of unemployed workers in Michigan could lose some of their jobless benefits in July if the spending bill stalled in the U.S. Senate doesn't pass.

Several states are counting on money from the bill.

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