Governor Snyder is expected to appeal a court ruling that would have given Michigan teachers back $550 million withheld from their paychecks.
Last month, the state appeals court ruled teachers must get wages back that were taken out of their paychecks to cover retiree health care.
Public school employees had three percent deducted for about two years under a 2010 law signed by then governor Jennifer Granholm.
The court said the initial salary deductions were improper.
A spokeswoman for the governor said that those payments are necessary for teachers to have a stable retirement system to rely on for health care benefits.