State officials are applauding a deal in Washington to avert the so-called “fiscal cliff.”
Michigan’s top budget official says he was most worried going over “the cliff” would have led to another recession. John Nixon says that would have made it difficult for the state to pay for some basic programs and projects.
He says a deal to avoid automatic across-the-board tax increases is a big step in the right direction.
“To the extent that they got the tax issues solidified and settled, I think it’s a great… it’s good news for the state of Michigan,” he says.
But Nixon says Congress still has a lot of work ahead to deal with spending. Upcoming negotiations in Washington could result in cuts to state-administered programs like Medicaid and food stamps.