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Thu January 3, 2013
Michigan May Be Short Revenue For Next Budget
Michigan's government may close last budget year with $1.2 billion on hand, but it will be needed to balance the current budget.
That's one conclusion in a report from the Senate Fiscal Agency. The report dated last week will be one of three used when state officials agree on a revenue forecast Jan. 11.
The forecast will be used to draft a new state budget starting in October and to revise spending in the current budget.
Analysts say Michigan's main funds will bring in $19.8 billion this budget year, or $372 million less than projected last May.
They warn school spending may have to be cut $150 per student next year. The reduction could be avoided if courts free up school employees' contributions toward retiree health care sitting in escrow.