Snyder preparing for budget cuts as revenue falls short
Michigan Governor Rick Snyder expects to make mid-year cuts in the state budget because tax revenue is $289 million short of initial predictions.
His administration and legislative economists are meeting Friday to settle on revised budget numbers. The shortfall of hundreds of millions of dollars is mostly being blamed on businesses cashing in tax credits at a higher rate than expected.
Snyder will use the new figures to decide how much to cut from the current budget and to finalize his budget plan for the next fiscal year. He will present his 2015-16 budget proposal to the Republican-led Legislature in February.
The Republican governor says the economy is doing well but past business tax credits are creating a "great deal of challenge and uncertainty."