LANSING, MI. (WLNS/AP) – Michigan is expecting a budget surplus this fiscal year.
The state budget director says Michigan didn’t lose as much as expected on public services and business tax refunds.
According to John Roberts, the Snyder Administration plans to be conservative with the expected surplus since businesses can claim tax credits this year rather than last year.
State economists will meet to settle on tax revenue forecasts before Gov. Rick Snyder can finalize his budget proposal due to the Legislature next month.
The meeting is set for Thursday morning in the Capitol.
The Snyder administration and nonpartisan legislative economists will receive outlooks on Michigan’s economy and the budget picture. The governor and lawmakers expect to see a larger-than-expected surplus left over from the fiscal year that ended more than three months ago.
Roberts says the money could be used for one-time infrastructure spending. Legislative fiscal agencies project tax revenue will continue to grow, but not as much as was forecast in the spring.
New Medicaid drugs could also put pressure on state funds.
Roberts says priorities will include the Flint water crisis and possibly infrastructure.