Revenue sharing payments to local governments would be cut by 12 percent in 2009-10 and many other state departments would see cuts of 10 percent next fiscal year under the general government budget the Senate passed Tuesday.

The proposal in SB 245 was the largest budget enacted by the Senate thus far since it began efforts to cut the budget in 2009-10 by at least $1.2 billion. Even larger cuts are in the offering, however, as Appropriations subcommittees began passing out budgets with massive cuts.

The budget was approved on a 20-16 vote.

The overall budget totals $2.975 billion, down $121.3 million from the current year.

The general fund portion of the bill would total $637.9 million.

Sen. John Pappageorge (R-Troy) said the state had no choice but to make the cuts because of the collapse in state revenues. When opponents call for changes to the budget, Mr. Pappageorge said, "The world is full of critics and we need playwrights," meaning that legislators had to show how they would recoup the funds needed.

Several Democrats did argue that the state could find some of the money it needs by eliminating some tax loopholes.

The cuts to revenue sharing alone were the largest overall, and would total nearly $97 million. Those cuts would come on top of $41.5 million in revenue sharing cuts enacted last month as part of the executive order cuts to balance the 2008-09 fiscal year.

Sen. Gilda Jacobs (D-Huntington Woods) said the cuts would devastate local communities, forcing more cutbacks in police and fire protections.

She tried unsuccessfully to convince the chamber to restore half of the cut.

Not every department in the multi-department bill would be cut by 10 percent, and there are other adjustments that would be included in the bill. For example, the Department of State would be cut by $10.3 million in general funds, but would see a $5 million increase in a new branch services fee.

The total gross appropriation for State would be $209.1 million. Mr. Pappageorge said the state should also look at legislation to create permanent vehicular license plates that could save the state $7 million a year.

The attorney general's budget would total $73.9 million, and include a $3.2 million general fund cut.

Senate Democrats, especially Sen. Gretchen Whitmer (D-East Lansing) who is looking at running for attorney general, attempted to win approval of several amendments they said would help ensure greater openness in the department.

A spokesperson for Attorney General Mike Cox said that with online publishing of all contracts as well as the annual case settlement reports his is the most open administration in history.

The budget also allocates $13.1 million to the Department of Civil Rights, with a general fund cut of $1.2 million.

The Executive Office would be allocated $4.8 million after a general fund cut of $493,600.

The Department of Information Technology would see a total cut in its interdepartmental grants of $27.3 million, meaning it would be allocated $404.1 million.

After a general fund cut of $9.5 million, the total Legislature's budget for 2009-10 would be $105 million.

The Legislative Auditor General's budget would be cut by $1.2 million, which after some economic adjustments, would leave it with $14.6 million.

The Department of Management and Budget would see general fund cuts of $6.4 million, plus savings from eliminating the state fairs of $6.6 million (although the Senate did approve a $100 placeholder for the state to hold the State Fair grounds in Detroit until another entity can be found to acquire the property) leaving the department with a total of $556.7 million.

The Department of Treasury's total budget would be $1.594 billion, including the cut $96.9 million from revenue sharing. And the Michigan Strategic Fund would be cut by $29 million to a total of $118.5 million. The 21st Century Jobs Fund would see cuts of $20 million, which Democrats tried unsuccessfully to reverse, saying that would cripple the state's efforts to boost jobs.