News

Actions

Snyder to propose saving $260M, not tax cuts

Posted at 12:13 PM, Feb 07, 2017
and last updated 2017-02-07 12:13:23-05

As Republican lawmakers push for an income tax cut, Gov. 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.