Jennifer Granholm says she has a new plan to help balance Michigan’s budget.
The state is facing a $900-million deficit.
Thursday, the Governor proposed making $344-million in spending cuts.
Republicans rejected Granholm's executive order last month because it relied on a two-percent tax increase.
Both sides agree something has to be done soon, if the state wants to avoid slipping further into the red.
Michigan's constitution requires the state's budget be balanced.