MI legislature turns focus to revenue
LANSING, MI – State lawmakers have approved the budget for this fiscal year, but now they must discuss revenue options to fill some of the holes created by deep cuts.
Through months of budget negotiations, Republican Senate Majority Leader Mike Bishop has remained committed to a plan that balanced the budget with cuts alone.
"As I've said before, we have no appetite for tax increases right now, and we're prepared to stand firm in that position," he says.
But the Senate did unveil a proposal for $163 million in new revenue generated by limiting tax credits and reforming the Michigan Business Tax structure. While the plan does not suggest any new taxes or fees, it does open the door for a revenue discussion with House Democrats. The House is hoping to raise $400 in new revenue to close gaps in the budget without dipping into federal stimulus money reserved for next year.
The House and Senate are expected to spend the rest of October focusing on revenue options.