Michigan leaders decide where to spend budget windfall

May 22, 2013

There’s a tentative budget deal between Governor Rick Snyder and the Legislature’s Republican leaders.

It puts more money into savings, schools, and roads. But, it also delays decisions on some of the governor’s priorities.

A budget windfall will allow the state to sock away more in savings, provide a boost to schools, and come up with enough money to qualify for federal matching funds to pay for some road repairs.

But House Speaker Jase Bolger (R-Marshall) says it doesn’t solve the problem of how to come up with an additional $1.2 billion for roads.

“This provides a solid down payment on our transportation needs. However, that’s all it is. It’s not a full solution. This is a down payment,” said Bolger.

Road funding is especially difficult with a Legislature that’s been opposed to higher gas taxes and registration fees.

There’s also no arrangement to take federal money to expand Medicaid eligibility.

Bolger says those discussions are ongoing.

“We’re going to continue our conservative budget based on existing sources,” he said. “We’re not going to plan for dollars or answers that aren’t there yet. So, Medicaid has not been answered.” 

The governor says Medicaid expansion under the federal healthcare law will save Michigan taxpayers money, but Republicans in the Legislature are not on board.  

Bolger says the governor and the Legislature are on track to get the new budget wrapped up by their deadline of June 1.