MI State Budget

Mich. facing budget problems because of lower tax revenues

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May 14, 2008 - 2:05PM

LANSING, Mich. (AP) - Fiscal experts say Michigan could have $434 million less than expected to spend on K-12 schools and other government services in the next budget year.

The financial trouble is here despite last year's increases in the state's personal income and business taxes to balance a budget deficit. Reasons include the national economic slowdown's effect on Michigan's economy and fewer people purchasing cigarettes and buying and selling homes.

The revenue forecast comes from the House Fiscal Agency. Another will come Wednesday afternoon when a legislative committee hears from Senate analysts.

Fiscal experts and Governor Jennifer Granholm's administration will meet Friday to agree on how much tax revenue state government can expect to collect.

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