Granholm: Stimulus Cash May Be Needed To Balance Budget

[Purveyor]

Source: Lansing State Journal

The state may have to use all of the discretionary money it gets from its portion of the federal stimulus plan -- as much as $2 billion -- to balance the budget in the coming year, Gov. Jennifer Granholm said today.

Even then, deeper spending cuts may be necessary, Granholm said.

"I’m just saying we have to have this conversation to use every single dollar to fill the deficit, and you'd still have to cut a significant amount," Granholm told reporters.

Granholm remarked after signing a bill to extend unemployment benefits by another seven weeks, up to a maximum 79 weeks. State unemployment officials estimate 200,000 laid-off Michigan workers will receive extended jobless benefits by the end of the year.

---SNIP---
Just two months ago, the administration and others vowed to use the stimulus money largely to create jobs and solve the state's long-term spending imbalances.

Read more: http://www.lansingstatejournal.com/article/20090413/NEWS01/304130002

[bluestateguy]

1. Not ideal, but even that can at least reduce or prevent layoffs of state workers

Remember the stimulus was to create and save already existing jobs on the chopping block.