HEADLINES : Michigan
State budget: Schools and movies get boost; taxes fall
LANSING -- Gov. Rick Snyder and Republican leaders in the Legislature reached agreement Wednesday on how to divvy up unexpectedly robust revenue, using most of it to boost school, road and welfare spending but also planning a modest -- and as yet unspecified -- cut in the state personal-income tax.
Snyder and the lawmakers, meeting to finalize the outline of the state's 2012-13 budget, decided to cut $90 million from individual income taxes, though whether that will take the form of a rate reduction or a larger personal exemption, and when it would go into effect, remained up in the air.
State House Speaker Jase Bolger, R-Marshall, the income tax proposal's biggest booster, said the agreement showed that state government can "focus on funding classrooms, paying down debt, putting money into savings and providing relief to individual taxpayers."