By Laura Weber, Michigan Public Radio Network
http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-915932.mp3
LANSING, MI –
Local governments and Medicaid may face some of the toughest cuts in an emergency budget proposal being prepared by state Senate Republicans.
AUDIO:
State Senate Majority Leader Mike Bishop says the Legislature has to drastically adjust its original budget proposals that counted on additional Medicaid payments from the federal government.
"It was presumed, and it's not coming, so we've got to react to it," he says. "We can't just be in awe that it's not there."
Bishop says even if the state does not get additional money from the federal government, Medicaid will not be exempt from further cuts. He says all areas of state government will feel the sting. That includes local governments, which rely on payments from the state to help pay for police and fire.
"Every function of state government will be addressed and has been addressed, and revenue sharing will be a part of that," he adds.
Bishop will not deny that local government revenue sharing could be eliminated altogether. Governor Granholm says those kinds of deep cuts are too damaging, and her plan will include new revenue to help fill budget gaps.