Michigan tax increases, programs could face tough budget times

Now that a temporary budget deal has been struck and a protracted partial shutdown of government avoided, Michigan lawmakers have 30 days to work out the specifics of the state's overall spending plan for the new fiscal year.

The debate started before the sun rose Monday, soon after lawmakers passed the final bills needed to secure an emergency budget extension and end a four-hour partial government shutdown.

Michigan citizens will face the largest tax increase since the 1980s, a combination of a higher income tax rate and an expansion of the sales tax to cover some services. State Treasurer Robert Kleine said Michigan taxpayers will pay just over 11 percent of their personal income on state and local taxes, up from just under 11 percent before.