With Auto Industry Shutting Down, Michigan State Government is Increasingly Collapsing.

May 25 (LPAC)--The state Senate stayed open to meet the fiscal emergency with rare Friday and Saturday sessions scheduled. The automobile industry, traditionally headquartered in Michigan, is systematically shutting down and being taken over by vulture funds determined to pick clean the auto companies' carcasses.

The resulting economic catastrophe has hit public revenues: the current $800 million state budget deficit will be more than doubled in the fiscal year starting next October.

The Wall Street rating agency Standard & Poor's announced May 22 it has lowered its rating on Michigan bonds, and demanded "real action" -- that is, severe budget cuts.

The Republican State Senate Majority Leader, Mike Bishop, called for considering changing the state legislature to a part-time-only basis, to save money.

The legislature is debating increases in the sales tax, income tax and gasoline tax.

Governor Jennifer Granholm ordered the Department of Civil Service, which sets conditions for state workers, to be abolished, and various advisory commissions shut down. Granholm said she would order cuts in student aid if no budget solution is found.