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In this morning's news...

Morning News Roundup, Wednesday, May 25th, 2011
Morning News Roundup, Wednesday, May 25th, 2011

Tax Restructuring

Governor Rick Snyder will sign his proposed tax-overhaul into law today. The measure has already been approved by both the Republican-led state Senate and House. The measure cuts taxes on some businesses by about $1 billion for the fiscal year that begins in October. The bill also ends tax exemptions on some retirees’ pensions and shrinks the state’s Earned Income Tax Credit for the working poor. The governor says the legislation will create jobs but many Democrats who oppose the measure say it will hurt seniors and low-income families.

Lansing Lawmakers Move Forward on Budget

The state Senate has started approving parts of the state's budget for the next fiscal year, including a bill that cuts funding for public universities by 15 percent. Laura Weber reports:

Republican leaders in the Legislature expect to wrap up work on the budget quickly and easily in comparison with recent years. The budget bills will volley between the Senate and House over the next week as lawmakers try to wrap up work on the budget by next Tuesday. Republican Senate Majority Leader Randy Richardville says he does not anticipate any big battles between the Republican-controlled chambers. But he says there may be a few hang-ups over schools funding. Democrats are upset that additional funds for K-through-12 schools will not go directly to reduce cuts to per-pupil funding. Additional projected tax revenue will instead go toward districts that approve cost-saving measures, and make retirement payments.

Detroit Budget: Bing v. City Council

Detroit Mayor Dave Bing says he'll veto the Detroit City Council's budget bill that cuts spending by $50 million more than the mayor wants. Vincent Duffy reports:

Detroit City Council voted 8-1 in favor of their plan. But Mayor Bing says adoption of his $3.1 billion dollar budget is crucial if Detroit is to avoid having Governor Rick Snyder step in and appoint an emergency manager to steer the city out of a $155 million dollar deficit. But many on the council say the mayor’s budget is overly optimistic and the $200 million dollars in cuts he proposed is far short of what's needed. The city's new fiscal year starts July 1.

Zoe Clark is Michigan Public's Political Director. In this role, Clark guides coverage of the state Capitol, elections, and policy debates.