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Coverage from across Michigan and the state Capitol with the Michigan Public Radio Network and Interlochen Public Radio.

Debate Begins Over Michigan Budget Surplus

Debate is underway over what Michigan should do with a projected budget surplus.

The state Senate Fiscal Agency released a reportlate last week saying the state likely took in over $400 million more than it originally thought this past fiscal year. That number is not official, and the state will take a closer look at revenues next month.

But lawmakers and interest groups are already weighing in on how to spend any surplus dollars.

“At least half of it should be invested in education,” said state House Democratic Leader Tim Greimel, “with provisions included that it has to be spent in the classroom in ways that directly benefit student academic achievement.”

Greimel says the other half should be used to give tax breaks to lower- and middle-class residents. Many Republican lawmakers are also arguing for an election year tax cut.

Public employee unions say their benefits should not be cut when the state is taking in more money than it spends. A state board is currently considering a contract proposal that would reduce state workers’ health benefits.

Governor Rick Snyder’s administration says the state still needs to make significant savings to be on solid financial ground.