October 1, 2007 (LPAC)--Had the Economic Recovery Act been adopted and the automobile industry been retooled when Lyndon LaRouche proposed these, Michigan would not be having a budget crisis now. The nine month long, insane debate on Michigan's state budget came to a head early Monday morning with a four-hour government shut-down, which itself was ended by the passage of a temporary budget, signed by Governor Granholm, legislating a $1.35 billion increase in spending cuts and income and sales taxes. The personal income tax rate was increased starting Oct 1 from 3.9% to 4.35%. A $613 million measure will extend the sales tax to dozens of services. Medicaid health care providers will see a 1.1% cut in reimbursement rates. And Michigan universities and community colleges will not receive budget increases this year. Both tax increases were approved in the Republican Senate on a 19 to 19 vote tie, with Lt. Gov. John Cherry casting the deciding vote.