Wednesday, June 17, 2026

Take a peek behind the curtain and test drive the NEW StateNews.com today!

Deficit predicted to carry into new year

December 9, 2004

During the past year's session, state legislators tackled issues ranging from affirmative action to same-sex marriage to gambling.

They passed a cigarette tax increase, a partial-birth abortion ban and agreed to increase the number of drug courts in the state, all amidst a budget shortfall that remains to be resolved.

"This has been a very challenging year. We had to make more budget cuts and make tough decisions," said state Rep. Michael Murphy, D-Lansing, adding that the 75-cent cigarette tax increase, approved in June, was one of those tough choices.

The tax increase took effect July 1 and is estimated to bring in more than $300 million for the fiscal year that began Oct. 1, with all of the increased revenue going to Medicaid.

"It was something that needed to be done," Murphy said. "Without it, people would lose necessary access to health care."

But even as lawmakers meet today for the last time this year, some already are worrying about the prospect of an even more difficult year ahead, with the looming budget deficit and bills left over from this year that are bound to be reintroduced when lawmakers return to session in January.

"Next year will probably be even tougher than this year because we're going to have to deal with a budget and structural deficit," said state Sen. Valde Garcia, R-Howell. "We've made tough decisions, but nothing excruciating because people are unwilling to make the decisions that need to be made.

"At some point, those choices will have to be made."

Throughout the year, legislators frequently butted heads with Gov. Jennifer Granholm's administration, particularly over the issue of balancing the state's $39.7 billion budget, which was done with only moments to spare on Sept. 30, the day before the new fiscal year began.

"We worked on a lot of issues together, but that's one of the downfalls," said state Sen. Alan Cropsey, R-DeWitt. "The budget was so overwhelming for everybody."

But, even in a year of divisive party politics, and an even more polarized presidential election, there were some highlights, Cropsey said.

The state approved increasing the number of drug courts, as well as the penalties for identity theft, and approved granting scholarships to students studying theology.

Some legislators, such as Garcia, said the year as a whole was taxing.

"I was pretty frustrated this year," Garcia said. "Given the budget situation, I felt we could've been more aggressive in cutting.

"We weren't, and now we're going to have to go out and do it again next year."

But others, such as Murphy, said although the year was a bit rough, he's optimistic about next year's session.

"Next year is going to be just like this year," Murphy said. "Very busy."

Discussion

Share and discuss “Deficit predicted to carry into new year” on social media.