State of Michigan and Surpluses
Great news once again for Michigan. According to administration officials, going into our next state budget process the state of Michigan will have a “one-time” $330 million dollar surplus.
Now the question is what they will do with it. Will they spend it, deposit it in the rainy day fund, reduce taxes or look to refund it back to the people of Michigan. Although I must admit $330 million is not a figure that can be counted on when it comes to reducing taxes, but possibly a one-time refund.
Remember we still have to deal with the business tax credits handed out by the Granholm administration which cost us taxpayers approximately $880 million dollars last budget year and will cost us unknown millions for the upcoming years.
Before you think about this any further they had already spent some of these “surplus” funds in the current budget year. How the accounting on that goes I do not know. Possibly they took it out of the rainy day fund thus should be paid back.
All that being said we must still celebrate a tax surplus, it sure it better than a tax deficit when it comes to the spending commitments the state has budgeted.
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