Estimate: Michigan has $616M less than planned

By: Associated Press
By: Associated Press

LANSING, Mich.--- Michigan budget experts agree that state government will have $616 million less than projected to spend over two fiscal years.

The consensus estimate released Thursday will be used by Gov. Rick Snyder and lawmakers to finalize the next state spending plan in coming weeks.

The drop in expected revenue is being blamed on higher income tax refunds, businesses cashing in old tax credits and a law making it harder to collect delinquent corporate taxes from corporate officers. Economic growth stalled in the first quarter of the year, but economists expect the economy to pick up with improved weather.

With less to spend than expected, legislators could have to curtail planned funding increases. They hope to finish the 2014-15 budget by late May or early June.

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