HEADLINES : Michigan
Michigan officials caution against budget plans
Republican Gov. Rick Snyder's administration said Tuesday it's too early to start making plans to spend what appears to be Michigan's budget surplus from the recently completed fiscal year.
The state could have a combined carry-over of more than $800 million in its general and school-aid funds from the fiscal year that ended Sept. 30, according to an early December report from the state budget office. The books likely won't be officially closed on the fiscal year for a few more weeks.
Republicans who control the Michigan Legislature are cautioning there's really not much of a surplus, once current spending and income projections are taken into account for the next two fiscal years. And Snyder may have plans of his own for the money as he works toward presenting a new budget in February.
"At this point, it's a little premature," Snyder spokeswoman Sara Wurfel said. "The governor has been very clear. He wants to make sure we don't get into the same situation that we have been in time and time again."
Michigan is trying to maintain stable spending, with annual revenues and expenses matching up without relying on one-time accounting gimmicks.
A preliminary look at the potential surplus was outlined in a Dec. 2 monthly report from the state budget office. The state's general fund had an estimated balance of $242.1 million to start the new fiscal year, an amount projected to drop to $25.8 million by the end of September 2012.

