CHICAGO - As the clock ticks for Michigan legislators to craft a budget or face government shutdown, Gov. Jennifer Granholm this week released a two-year budget proposal that increases taxes to generate $1 billion in additional revenue, cuts $2 billion in spending, and relies on $2 billion in federal stimulus funds.

Granholm's proposal comes after weeks of closed-door meetings on the budget with top state legislators. The Republican-led Senate has passed a balanced fiscal 2010 budget that relies on $1.2 billion in cuts. The Democratic-led House has yet to offer a proposal.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.