LANSING, Mich. (AP) — The state Legislature agreed early Monday to raise the income tax and expand the sales tax to services in a deal with the governor that quickly ended a partial state government shutdown.

For a little more than four hours, fewer state police patrolled Michigan highways, campgrounds were closed and road construction projects and lottery sales were stopped.

Applause broke out in Democratic Gov. Jennifer Granholm's office when the final vote was announced at 4:18 a.m.

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Ithaca Mayor Carolyn K. Peterson proposed a budget for 2007 of nearly $52 million. The new budget includes a 2.26 percent tax rate increase and 6.1 percent tax levy increase, the lowest levy increase since 2002, according to City Controller Steve Thayer.