Lawmakers closing in on budget deal

LANSING, Mich. (NEWSCHANNEL 3) - It looks like state lawmakers are closing in on a budget deal.

Leaders from the republican-led Senate and democratic House are expected to sign an agreement Wednesday.

They're trying to erase a nearly $500 million budget shortfall.

Tuesday Senate Majority Leader Mike Bishop and House Speaker Andy Dillon announced an agreement "in principal" on budget targets.

It includes the 3-percent across-the-board state government cut the governor proposed earlier this summer.

The deal also includes a tax amnesty proposal and early retirement incentives for state workers.

Governor Granholm wants a budget deal in place as soon as possible with the fiscal year starting October 1st.