Published September 20, 2007
LANSING (AP) - The state House began voting on another proposal to raise the state's income tax late last night, an effort to resolve a budget crisis projected for the fiscal year that begins Oct. 1.
More like this
The proposal would raise the state's income tax from the current 3.9 percent to 4.6 percent.
The income tax proposal would raise about $1.1 billion for the state next fiscal year, leaving more than $600 million of a potential deficit to be eliminated by cuts or other revenue sources. The income tax rate would drop back to 4.2 percent in 2011.
Other votes later last night could possibly include extending the sales tax to some services. Some spending cuts also may be voted on. House Democrats were trying to woo Republican votes for the income tax by tying it to several cost-cutting proposals, possibly including the elimination of lifetime health benefits for lawmakers, a reduction in the use of state vehicles and other changes to benefit levels for state employees. In another effort to persuade undecided voters, a small portion of the income tax revenue would go to the state's lowest funded schools and some would go to fish and wildlife programs.
The proposal would need 56 votes to pass the 110-member House and advance to the Senate. About an hour into the tally, the proposal was 14 votes short of passing, and 15 lawmakers were not posting votes. Democrats hold a 58-52 edge in the House, but six of them were voting against the proposal.
The state has a projected $1.75 billion deficit for the fiscal year that starts in 12 days.
A partial government shutdown is possible unless a solution is found soon.
It appeared late last night that whatever bills the Democrat-controlled House might pass, the Republican-controlled Senate wasn't on board. Matt Marsden, a spokesman for Senate Majority Leader Mike Bishop, said there had been no agreement reached between leaders of the two chambers several hours after House Speaker Andy Dillon announced the House would be voting.























