Posted on 01/03/2008 1:43:22 PM PST by mombyprofession
Michigan has $350 million budget surplus
Posted: Jan 3, 2008 02:06 PM
Updated: Jan 3, 2008 02:06 PM
LANSING, Mich. (AP) - Reduced spending and higher than expected tax receipts helped the state leap into the new year with a $350 million budget surplus.
Michigan ended its fiscal year Sept. 30 with $259.1 million. Annual state financial reports also listed the School Aid Fund with more than $94 million.
The surplus is for the 2006-07 fiscal year, a period in which a deficit of more than $1 billion was filled by delaying payments to state universities and community colleges, dipping into funds set aside for job training and substance abuse treatment and selling off part of the state's future tobacco settlement. Taxes were not raised to deal with the shortfall.
Budget officials and state legislative leaders will decide how the extra money will be used. The Senate Fiscal Agency has predicted a deficit of $34 million for the state general fund next fiscal year, while others have warned of a larger shortfall, the Detroit Free Press reported Thursday.
Officials are to meet Jan. 11 to update Michigan's budget forecasts for the current fiscal year and the one that starts Oct. 1.
The surplus is not part of this year's budget agreement, under which taxes were raised by $1.35 billion and spending was cut or restricted by more than $400 million to help wipe out a $1.75 billion state budget deficit and place the state on sounder financial footing.
"The fact that we've closed the books with a surplus is more advantageous than finding out we're in the hole again," Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester, told The Detroit News.
thank you. i saw this posted in the detroit news this morning, but they’re a forbidden site.
MI ping!
Have no fear. They’ll spend it soon enough.
SPENDING SPREE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Typical- balance the budget by a increase taxes over reducing spending by 3:1.
Also, most of this surplus is phony because it was achieved by delaying payments, which is why I suspect the School Aid Fund had a $94M "surplus". When they meet to decide how the money will be spent (as the article decribes), the funds will go to past due payments.
Bush’s fault.
That is an expensive way to create a temporary surplus.
Maybe they can give some to us here in NJ - you know Red State to Red State, Honor among thieves, etc.
Only later in the article does the author reveal the massive tax increase the state levied on its citizens.
How about giving it back?
So Michigan residents can expect a tax break right?
BWWAAA HA HA HA HA HA HA
I made a funny :)
Well then, I guess the taxpayers are due a refund.
Snort!
WTF!
I just heard that they are working overtime writing the refund checks to all you lucky tax payers /s
By delaying payments, and issuing tobacco bonds, they created this tiny “surplus.” Lets see what Jen the Red does this fiscal year....
This was casually mentioned a couple of weeks ago on Tim Skubik’s Off the Record. There was little discussion about it.
Much like the “budget crisis” in Virginia a few years ago, right after taxes and fees were raised it was discovered there was actually a surplus. Imagine my surprise.
If they moved south to Ohio they're likely to be disappointed.
Me too. I am going to stand by the mailbox and wait for my $50 check.
Where is my coat, hat, gloves and shovel?
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