State agencies could get 20% cut in next MI budget

LANSING, Mich. (AP) - Michigan agencies are being told they could see up to a 20 percent cut in the next budget year on top of the 10 percent cut they took this year.

Liz Boyd, Gov. Jennifer Granholm's spokeswoman, said Tuesday that departments are being asked "to put together plans that reflect a 20 percent reduction."

Michigan has seen revenues drop in the tight economy, and will have little federal stimulus money left to use in the budget year that begins next Oct. 1.

The Democratic governor wants to revamp Michigan's tax structure to raise more revenue, but so far that's only in the planning stages. She's expected to present her budget plan in February.

Republican senators have said they'll put out a list of reforms this week that could save money.