Granholm urges support for auto industry in private meeting with Obama

No specific numbers were discussed during the meeting, Granholm said, but she added Obama indicated the stimulus package 'will happen' and states are likely to get relief for Medicaid costs and help with job-creating state infrastructure projects as soon as January. She said the dollar amount to Michigan 'will be significant' and that promise of relief will temper the executive order budget cuts she will announce later this month. State fiscal analysts have estimated the federal help will amount to at least $400 million and could be more than $650 million. 'It will lessen the need right now to do immediate, drastic cuts,' Granholm said. Projections that the cuts coming this month will be in the $400 million range likely won't happen, she said. 'We are not seeing the revenue reductions we otherwise would have been expecting,' the governor said. 'We do not want to force these cuts on programs that help people... when we know we're getting relief.' Senate Republican leaders have said they want to make the necessary cuts now so the state budget won't be out of whack in 2010. Granholm said she may propose 'a down payment' on the deficit problem. The governor talked with the Michigan delegation about the auto loan package via conference call. She said she has spoken with the auto company CEOs and United Auto Workers union President Ron Gettelfinger, adding 'I'm encouraged by what I'm seeing so far. They all will have plans that are specific and future-oriented. 'The symbolic pieces have been taken care of,' she added, noting that the auto company leaders have promised to accept $1 in salary and they're not trekking to the nation's capital this time in corporate jets. Finally, Granholm said she has not been asked to join the Obama team. Recent reports had her on the short list for U.S. labor secretary. 'I'm not aware that I'm being vetted in any way,' she said. You can reach Mark Hornbeck at (313) 222-2470 or mhornbeckdteom.