Tagged: michigan budget

State Senate Majority Leader Randy Richardville says budget negotiations for the coming fiscal year are already underway at the state Capitol. Richardville says he expects the budget to be done several months ahead of the constitutional deadline of October.

Last year the Legislature finalized a spending plan in June.

Michigan’s Attorney General is appealing a ruling that prevents the privatization of nursing assistants as a state-run home for veterans.

The Grand Rapids Home for Veterans is one of two state-run hospitals (the other, much smaller one, is in Marquette) for veterans in Michigan. More than 700 veterans are housed there.

We are now just a few days into the state’s new fiscal year. State Budget Director, John Nixon gives us an update on the state of Michigan’s finances.

Nixon says many states relied on federal stimulus money, and now it's time to look at other options.

“We had a huge infusion of stimulus money and then there was a big cliff because once that stimulus money went away all the states are scrambling saying, “oh my gosh how do we keep our programs whole?” Well that’s what we’ve done. We cut a billion and a half dollars of spending out the budget and we balanced the budget.”

Governor Rick Snyder says the state government is “evolving very quickly” because it needs to. Snyder highlighted his administration’s accomplishments and his remaining goals during a visit to St. Joseph today.

Protestors once again greeted Snyder in St. Joseph, this time outside the heritage museum. They pass around petitions to recall the Governor. About 20 people chant “Recall Rick!” as he enters the building.

Inside, Snyder told a friendlier crowd he’s aware he’s taking on “ugly” issues like education reform, pension and business taxes.

The House Fiscal Agency says it expects Michigan to take in $427 million more by Sept. 30 than earlier forecasts.

It tempers the good news with a warning that the new business tax cut just enacted will create a deficit in the next budget year that will have to be filled with about $77 million of the extra revenue.

The agency released its figures Friday in anticipation of Monday's revenue estimating conference where state economists will forecast how much tax money the state will take in through 2012.

Republican lawmakers in Lansing are taking feedback on their first draft of the budget for K through 12 public schools. The plan cuts less per student than Governor Rick Snyder’s proposed budget.

Senator Howard Walker chairs the appropriations subcommittee on K-12, School Aid and Education. He says instead, the Senate version gets rid of line items funds in the budget that cover specific things like school bus inspections, adult education, and money for districts with two consecutive years of declining student enrollment.

 “We’re not making broad-based cuts to programs, that we’re not increasing class sizes too broadly so that the delivery of good educational opportunities is not affected.”

School districts get a certain amount of money from the state for each student. Currently, $7,316 is the minimum per pupil allowance a district gets. Governor Snyder is proposing to cut that amount by $470 (including making permanent a $170 cut made last year) for all school districts. The plan before the Senate would cut that per pupil allowance by $290.

Update 12:21 p.m.

The State of Michigan will have to honor some tax credits for years to come because of contractual obligations.  In a speech today, Governor Snyder indicated over the next four years, the state was on the hook for $2-billion dollars in credits.  About $500-million of that is in next year's budget. 

March 2nd, 8:23a.m.

Governor Snyder says his approach to taxes in Michigan is “simple, fair, and efficient.”  One way the Governor wants to make the tax structure more fair is by eliminating all tax credits for business.  It’s a controversial move which surprised many people in Lansing.