Gov. Snyder Prepares For Budget Cuts As Revenue Falls Short

LANSING (WWJ/AP) - Governor Rick Snyder expects to make mid-year cuts in the state budget because tax revenue is 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.

"The numbers have grown significantly over the last couple months and potentially in more recent days, even. The largest feature of that is not the fact that our economy is having challenges, the economy is doing well in Michigan, it's the fact of these tax credits from prior administrations," Gov. Snyder told WWJ Lansing Bureau Chief Tim Skubick.

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 budget deficit could be anywhere between $200 million and $450 million.

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