Michigan Back Facing a Budget Problem?
A new report with some indications that the future in Michigan might not be all that rosy. Less than three months into the new fiscal year, it looks like there could be a shortfall in the budget.
The Detroit News is reporting today the findings of a Senate Fiscal Agency report that projects the general fund budget could be more than $162 million dollars behind projections. On the flip side, the same report found a surplus in the School Aid Fund of nearly $172 million.
The problem stems from estimated tax revenues coming in more than $200 million below what economists projected back in May. Those numbers were used by the Legislature to set the state budget.
"We are going to have some challenges over the course of the next few months," said State Rep. Al Pscholka, R-Stevensville. "It's hard to know what's going to come in."
Pscholka will be the new chairman of the House Appropriations Committee in the coming session.
While concerns are being raised, the article indicates many believe the numbers could turn around. Income tax recipients have tended to boost revenue in recent years.
The non-partisan fiscal agency believes the solution could be found in a "shift of revenue from other sources or reduced spending" by the new Legislature.
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