Michigan Democrats want to cut state pension tax, boost K-12 funding

Apr 8, 2013

LANSING, Mich. (AP) - Minority Democrats in the Michigan House say pension income should no longer be taxed and other Republican-backed tax changes from 2011 should be repealed.

Democrats included the proposals in a list of budget priorities unveiled Monday in Lansing. House Democrats say their plan puts "families first," but it faces an uphill climb because Republicans control the Legislature.

Democrats propose spending more on K-12 and higher education than Republican Gov. Rick Snyder is proposing. They say they'd help fund the tax cuts by eliminating government waste, changing contracts with state vendors and using money from a rainy day fund.

House Republicans say Democrats are relying on unrealistic and nebulous assumptions to save money.

Lawmakers have a self-imposed June deadline to approve the next state budget.