CHICAGO — Michigan Gov. Jennifer Granholm yesterday unveiled a $47 billion all-funds fiscal 2011 budget that eliminates a $1.8 billion shortfall in part by imposing a tax on services and cutting state employee retirement and health care benefits.

Granholm, a Democrat, also proposed reducing the state’s sales tax rate to 5.5% from 6% and phasing out an unpopular 22.5% surcharge to the Michigan Business Tax.

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