Snyder Budget Proposal To Include $260 Million In Savings

From the Associated Press — As Republican lawmakers push for an income tax cut, Governor Rick Snyder instead will propose growing Michigan’s savings account to $1 billion. State budget director Al Pscholka told The Associated Press Tuesday that Snyder wants to add a “sizable” $260 million to the budget stabilization, or rainy day, fund in the next fiscal year. It would be the largest deposit since Snyder’s first year in office. The Republican will unveil his budget plan Wednesday. Pscholka says it’s smart to save money because of “one-time” tax revenues and looming budget pressures. Lawmakers voted to permanently shift general funds to road repairs starting in 2018. Other squeezes include Medicaid expansion costs and the phase-out of business equipment taxes. Snyder also will propose directing $1.2 billion to the Public School Employees Retirement System.