© 2024 WEMU
Serving Ypsilanti, Ann Arbor and Washtenaw County, MI
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Snyder And Michigan Lawmakers Look To Trim Spending

Michigan State House of Representatives
Wikipedia Media Commons

There’s less money than expected for Governor Rick Snyder and the Legislature to put together the next state budget.  There’s also a shortfall in the current fiscal year.  

John Roberts is Governor Snyder’s budget director. He says the governor and state lawmakers can close the budget gap without jeopardizing money to address the Flint water crisis and the looming financial collapse of the Detroit Public Schools.  “Flint and DPS will continue to be a priority for us,” he said.  “We see a way to balance with keeping those priorities funded.” 

The shortfall is due to high Medicaid caseloads and lower-than-expected corporate and sales tax revenues.   In 2016, the shortfall is $147 million, which brings the combined General Fund and School Aid budgets to $21.8 billion.  In 2017, the shortfall is $159 million, and in 2018, the projected shortfall is $63 million. 

Lawmakers also say they’re not in a panic.  “I think there’s a way very easily to protect K-12, to protect revenue sharing, Detroit and Flint, and have a balanced budget,” said Representative AlPscholka (R-Stevensville), chairman of theHouse Appropriations Committee

Pscholka says some strategic budget shaving will go a long way.  His plan to balance the budget also includes ending a tax loophole that benefits auto insurance companies and costs the state $80 million a year.

Like 89.1 WEMU on Facebook and follow us on Twitter

— Rick Pluta is the Managing Editor and Reporter for the Michigan Public Radio network.  Contact WEMU News at734.487.3363 or email us at studio@wemu.org

Rick Pluta is the managing editor for the Michigan Public Radio Network.
Related Content