Shutdown over, state workers told to report for duty Monday

By: The Associated Press
By: The Associated Press

Governor Granholm is asking state workers to show up for their normal Monday shifts now that a partial government shutdown is over.

The shutdown officially began at about 12:01 a.m. Monday and ended about 4:20 a.m. But it had consequences as the state began shifting into shutdown mode late Sunday.

More than 1,000 people were asked to leave campsites in state parks.

Some highway rest areas also closed, and overnight road construction projects and lottery sales were stopped at midnight.

The shutdown didn't end until the lawmakers passed a combination of tax increases and government restructuring bills. This came after Granholm signed a 30-day budget extension.

Impact of higher Michigan income tax

One of the sticking points involves raising the state income tax.

Residents would pay more taxes if Michigan's income tax rate rises from 3.9 percent to 4.35 percent. The Legislature has passed the bill and Gov. Jennifer Granholm is expected to sign it.

--A single individual making $42,000 a year would pay $173 more.
--A single individual making $73,000 a year would pay $313 more.
--A single individual making $100,000 a year would pay $434 more.
--A married couple earning $42,000 a year would pay $158 more.
--A married couple earning $73,000 a year would pay $297 more.
--A married couple earning $100,000 a year would pay $419 more.
--A married couple with two children and $42,000 in income would pay $121 more.
--A married couple with two children and $73,000 in income would pay $260 more.
--A married couple with two children and $100,000 in income would pay $382 more.

Source: Michigan Department of Treasury and Associated Press research. (Assumes a personal exemption of $3,500 and child exemption of $600 per child.)

Deal includes changes aimed at saving school health costs

Part of a deal to balance the state's budget deficit is aimed at lowering the employee health costs of K-12 schools and local governments.

The legislation lets schools and governments pool their workers' health coverage and requires public employers to competitively solicit bids for health benefits.

Supporters say the measure will save millions of dollars a year.

But it will open up the claims data of an insurer affiliated with the Michigan Education Association, the state's largest teachers' union.

Critics say the bills will save no money.


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