Governor Snyder will present his recommended budget for 2015-2016 on Wednesday morning.
Detroit Free Press Lansing reporter Paul Egan wrote an article about the anticipated budget.
The state's general fund, he said, is like the state’s “checking account.” For the current 2015 fiscal year, the state has a $325 million deficit. For the 2016 fiscal year – the year for which Snyder will present his recommended budget on Wednesday – a $532 million deficit is expected.
This deficit is a result of a surge in Michigan corporations’ redeeming of tax credits.
“The government is saying it’s a little bit of a paradox that as the economy has gotten better, that’s enabled more of these tax credits to be cashed in and that has put the state in a worse budget position,” Egan said.
Egan listed third grade reading, skilled trades and universities as areas that may receive increased spending in the coming year. While details on potential cutbacks have been less developed, he said the merger between the Department of Community Health and the Department of Human Services may be a potential area for cuts, along with the Department of Corrections.
Listen above to hear more from Egan on the anticipated budget.