How much money should Michigan keep in its piggy bank?

Apr 26, 2013

LANSING, Mich. (AP) - Gov. Rick Snyder and lawmakers don't agree on how much money to set aside in Michigan's savings account.

The rainy day fund was nearly empty when the Republican governor took office after a decade of job losses and budget crises. He successfully built it back up to more than $500 million and is hoping to add another $75 million.

Snyder says a healthy cash reserve is good for the state's credit rating and prudent in case there are future economic downturns.

But the GOP-led Senate next week is expected to approve a budget without extra money in the account. Some legislators say savings are robust and the $75 million should go to other priorities instead.

The House is more in line with Snyder. Lawmakers will negotiate their differences next month.