Last-minute tax changes stop State of Michigan shutdown

A partial shutdown of State of Michigan government services ended after four hours early this morning.

The state's budget expired at midnight and the partial shutdown started at 12:01 a.m.

However, the Michigan Senate voted early today to extend the state's sales tax to services in two months' time.

That vote prompted Governor Jennifer Granholm (shown) to end the four-hour shutdown.

State legislators also voted to raise Michigan's income tax rate from 3.9 percent to 4.35 percent.

The following statement was issued this morning by the State of Michigan:

************************* Agreement is reached

State legislators have reached a comprehensive budget agreement to end a government shutdown.

State government will be open for business on Monday, October 1 and all state employees should report for your next scheduled shift.

The budget agreement includes reforms and new revenues that will fund the vital work of state government and help Michigan avoid the types of structural budget issues that have contributed to recent financial problems.

The notice of temporary layoff you received on Friday, September 28, 2007 is no longer in effect.

Again, all state employees are expected to report for work at the beginning of your regularly scheduled shift on Monday, October 1, 2007.

More information on the details of the agreement will be provided via your department director and supervisors.

Thank you for your patience and commitment throughout this difficult process.

************************* Truth, justice and tall, skinny pictures of politicians

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