Tax Rebate, Cut Considered As State Has Extra $1B To Play With
LANSING (WWJ/AP) – Gov. Rick Snyder and lawmakers have nearly $1 billion more than expected when crafting Michigan’s next budget.
The Snyder administration and economists on Friday agreed the state will take about $975 million more in tax revenue from last fiscal year through the next budget year than was forecast eight months ago.
The consensus revenue estimate is good news, and now the debate will ramp up over what to do with the surplus.
“Twenty-fourteen is an election year; lawmakers want to get their jobs back,” said WWJ Lansing Bureau Chief Tim Skubick. “Do you think they’re gonna talk about giving some of the money back to the taxpayers? You bet your booties they are.”
The question remains, said Skubick, how much?
“They want to move very slowly and deliberately on this,” Skubick said. “Lawmakers will maybe want to do a tax rebate or reduce the tax rate. Those are in play, but no final decisions have been made.”
More road repairs and extra money for education are also on the table.
Snyder will propose his budget recommendation in February. The Republican-led Legislature wants to finalize the spending plan around Memorial Day.
Before finalizing the budget, legislators will get another revenue forecast in May.
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