A gradually recovering economy is helping stabilize Michigan's long-suffering state budget, even leaving a surplus that could be spent over the next year or two, state officials said Friday.
State budget director John Nixon said there's an unanticipated surplus of $457 million left over from the fiscal year that ended Sept. 30.
Proposals for spending part of the surplus are expected when Republican Gov. Rick Snyder's administration rolls out its next budget plan Feb. 9.
There will be competition for the money, which came from higher-than-expected revenues and from state departments spending less than expected last fiscal year.
Democrats want the cash to offset some recent cuts to public education funding, while Republicans who hold the majority in the Legislature say much of it should be put in savings or used to pay off long-term financial obligations.
Some Republican leaders are hesitant to acknowledge there's any extra money available, saying the state must remain cautious with its spending in an uncertain economic environment.
"The bottom line here is we've stopped dying, but we're not dancing yet," said Rep. Chuck Moss, a Republican from Birmingham and chairman of the House Appropriations Committee. "We've got a recovery going. It's an anemic recovery, by historical standards very, very weak."
Lansing-area lawmakers are encouraged by the news, but say big questions remain about how to spend any surplus money the state takes in.
"We have to resist the temptation to spend any additional revenue on one-time giveaways," said state Rep. Deb Shaughnessy, R-Charlotte.
"We really owe it to our children and our grandchildren to use that money wisely, because we do have long-term debt that we have to deal with."
Rep. Joan Bauer, D-Lansing, said she hopes the state instead can invest in areas that have been hard-hit by recession, such as education.
"It's my hope that we will not need severe cuts in the coming budget, that we hit bottom and we're starting out."
Michigan Treasurer Andy Dillon and directors of the House and Senate fiscal agencies met Friday to estimate how much revenue the state will take in this fiscal year and next fiscal year.
After a decade of deficits, Michigan is expected to head into the next budget year on relatively solid footing. But revenue growth to the state will be restrained, in part because of business tax cuts that kicked in this month.
lansingstatejournal.com
State budget director John Nixon said there's an unanticipated surplus of $457 million left over from the fiscal year that ended Sept. 30.
Proposals for spending part of the surplus are expected when Republican Gov. Rick Snyder's administration rolls out its next budget plan Feb. 9.
There will be competition for the money, which came from higher-than-expected revenues and from state departments spending less than expected last fiscal year.
Democrats want the cash to offset some recent cuts to public education funding, while Republicans who hold the majority in the Legislature say much of it should be put in savings or used to pay off long-term financial obligations.
Some Republican leaders are hesitant to acknowledge there's any extra money available, saying the state must remain cautious with its spending in an uncertain economic environment.
"The bottom line here is we've stopped dying, but we're not dancing yet," said Rep. Chuck Moss, a Republican from Birmingham and chairman of the House Appropriations Committee. "We've got a recovery going. It's an anemic recovery, by historical standards very, very weak."
Lansing-area lawmakers are encouraged by the news, but say big questions remain about how to spend any surplus money the state takes in.
"We have to resist the temptation to spend any additional revenue on one-time giveaways," said state Rep. Deb Shaughnessy, R-Charlotte.
"We really owe it to our children and our grandchildren to use that money wisely, because we do have long-term debt that we have to deal with."
Rep. Joan Bauer, D-Lansing, said she hopes the state instead can invest in areas that have been hard-hit by recession, such as education.
"It's my hope that we will not need severe cuts in the coming budget, that we hit bottom and we're starting out."
Michigan Treasurer Andy Dillon and directors of the House and Senate fiscal agencies met Friday to estimate how much revenue the state will take in this fiscal year and next fiscal year.
After a decade of deficits, Michigan is expected to head into the next budget year on relatively solid footing. But revenue growth to the state will be restrained, in part because of business tax cuts that kicked in this month.
lansingstatejournal.com
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