Gov. Rick Snyder on Tuesday plans to sign mid-budget year bills to finalize a plan to tackle Michigan’s projected $412 million shortfall in two primary funds that receive about $21 billion annually in tax revenue.
State revenue is $289 million short of projections in the current budget and $527 million below expectations for next year – largely because of large companies cashing in tax credits.
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 Republican-written spending plan affects many corners of life — from how much it costs to attend a university to how many state troopers patrol the highways.
Late-night wrangling over hiking taxes to improve roads overshadowed Michigan lawmakers’ final days in Lansing before they broke for much of the summer.
Budget director John Roberts said the Republican governor’s priorities in coming weeks include securing legislative support for $195 million to help end Detroit’s bankruptcy .
It’s almost a done deal.
Half of that money is planned to be set to local communities in the new future.
Legislators in the Michigan House want to set aside $115 million more for road projects than their counterparts in the Senate.
Gov. Rick Snyder is taking on what he says is “misinformation” over his record of funding public schools not long before he puts forward his next budget.