Michigan has been staring down the barrel of an estimated $800 million deficit in the state’s general fund for the 2011 fiscal year. The Detroit News reports that a budget deal without tax increases was reached by Senate Majority Leader Mike Bishop, House Speaker Andy Dillon and state budget director Bob Emerson. The deal is expected to be signed today and reportedly includes:
- A 3 percent cut in budgets of all state departments.
- A tax amnesty program.
- An early retirement program for state workers.
- Reforms of the state’s liquor laws.
- Changes to the state’s unclaimed property law, allowing the state to take possession of property earlier than in previous practice.
- Refinancing of some state bonds to take advantage of favorable interest rates.