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Wed May 16, 2012
More revenue than expected for Michigan's next fiscal year
Michigan's budget will have about $300 million more this year than state economists predicted in January.
That money is the result of a combination of higher-than-expected tax payments and fewer people receiving Medicaid and other state services.
That came from today's revenue estimating conference in Lansing.
State budget director John Nixon says he thinks much of the extra money may go into the state's rainy day fund. Or it may be set aside in case the state loses legal fights over collecting income taxes on public pensions or having state workers pay more of their pension costs.
“What we’ll do is with the one-time money, we’ll look for one-time expenditures," said Nixon. Budget Stabilization Fund is obviously a piece, a good place to put one-time money, as well some of the other spending pressures we have in the budget.”
Officials also estimate the state will have about $100 million more to spend in the budget year that starts Oct. 1.
Nixon says he doesn't think that will mean radical shifts in the budget bills lawmakers hope to finish by month's end.
The budget news accompanies forecasts that Michigan’s economy will continue to grow at a slow pace – with many of the new jobs coming from higher-paying fields. Michigan’s unemployment rate dropped again in April, hitting 8.3 percent.
When people who have quit looking for work are counted, as well as part-time workers who’d like to be full-time, Michigan’s rate of unemployment and under-employment is 17.8 percent.