Mich. state employees told to stay home

By David Eggert, Associated Press Writer

LANSING, Mich. — Two-thirds of Michigan's state government workers were told Friday not to report to work Monday as negotiations continued on a budget plan that could avert a partial state government shutdown.
Messages went to about 35,000 state workers, telling them they were being placed on a temporary layoff beginning at 12:01 a.m. Monday and not to go to work unless otherwise notified.

About 18,000 state employees will remain on the job, including 12,000 prison employees, said Liz Boyd, a spokeswoman for Democratic Gov. Jennifer Granholm.

"We will have limited state police," Boyd added.

A partial government shutdown could derail lottery sales, driver's license renewals and many other services the governor would deem non-essential in a fiscal emergency.

A Wayne County judge, however, on Friday gave the three Detroit casinos permission to stay open even if the state is unable to oversee them during a shutdown. The casinos contribute $1 million a day to state public schools and Detroit public safety, a casino spokesman said.

Members of the Granholm administration met with both House parties on Friday afternoon, raising hopes that a proposal was close to fill a $1.75 billion shortfall in the fiscal year that starts Monday.

Negotiations center on raising the state's personal income tax rate, now at 3.9%, to as high as 4.6%. Another key issue is extending the sales tax to some new services.

House members were told no budget deal votes were likely until later Friday. Legislative leaders and the Granholm administration were tight-lipped about possible progress.

Associated Press Writers Kathy Barks Hoffman and Tim Martin contributed to this report.

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