You are viewing this article in the AnnArbor.com archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see MLive.com/ann-arbor
Posted on Mon, May 16, 2011 : 5:08 p.m.

Michigan economists agree: State has extra $429M in revenue

By AnnArbor.com Staff

Michigan economists agreed today that the state's revenue forecast now calls for an extra $429 million in this year's budget - and $499 million by next year, according to a report on Freep.com.

However, next year's revenue surplus could be erased by the new tax structure that Gov. Rick Snyder is expected to sign.

The revenue gains were predicted last week.. Read the Freep.com report on the official word from state economists today here.

Comments

Roger Roth

Tue, May 17, 2011 : 9:50 p.m.

Look folks. Be realistic. Ronald Reagen ended communism when he said, "Mr. Gorbachov, tear down this wall!" (It was his B actor voice.) He, not Carter, got the hostages released from Iran. Bush got bin Laden. And, economic policies instituted during the two Bush administrations are responsible for this economic turn around. Credit where it's due. Granholm messed things up and now, in no time, Rick is turning it around. Yea, Rick!!!!!! Yea, Republicans, except those "who can't keep their flies zipped."

DaLast word

Tue, May 17, 2011 : 2:36 p.m.

All of the econmic problems at the state and Federal level go away when everybody has a job. They pay taxes, pay their mortgage,and buy things in their communities. We need to put tarrif's on companies and good being brought in from outside this country, level the playing field.

AnnArBo

Tue, May 17, 2011 : 2:21 p.m.

WAKE UP PEOPLE.......this "surplus" is not even half of what the deficit is. We continue to spend more than we take in at the state and federal level by unsustainable margins. How many of you could survive by spending 60% more than you make, is the answer to ask your neighbor for more money, or continually load up your credit cards? The answer is not raising taxes, that is also unsustainable expecially if we do not cut spending. The only answer is to increase jobs, which translates into more revenue, look at history and that's when we had boom times. Until we get serious about encouraging real growth and job creation, AND get serious about spending reform, we're headed for serious trouble.

Edward R Murrow's Ghost

Wed, May 18, 2011 : 3:22 p.m.

"We continue to spend more than we take in at the state . . . " Wrong. The state constitution requires a balanced budget every year. Good Night and Good Luck

maallen

Tue, May 17, 2011 : 2:12 p.m.

If you read the article closely, it says "forecast." Which means that the economists are predicting. As of right now, there is no extra $429 million, but they are predicting there will be. What would be interesting to see is how often these Michigan economists are actually right. If the Michigan economists are anything like the economists at the Congressional Budget office and the Office of management and budget then their track record will be very poor.

Micky Mouse

Tue, May 17, 2011 : 1:46 p.m.

Not sure how you come up with extra 429 million. But, it does make you feel better than all the gloom and doom. I am sure Gov. Snyder will not take credit for this. But, if this is true it sure helps his direction. I was sure the initial 300 dollar per pupil cuts in schools predicted would not happen. So, all the doomsayers especially the Mea take a break. Michigan is finally headed back from the edge and with a good leader in charge.

Michigoose

Tue, May 17, 2011 : 3:07 a.m.

This has nothing to do with Snyder, who has been in office for less than a year and whose disastrous economic policies will only take their toll only next year. But what does depend on Snyder is whether the money gets used for its intended purpose. And I mean "disastrous." People in Michigan will literally die due to cuts in programs that save lives such as public health clinics and public safety. Developmentally disabled children will not learn how to talk because of cuts to education. Many more children will not learn how to read, and will end up as trading chips for the profiteers of private prisons. Laid-off public and private-sector workers will leave the state or need government assistance to get by. Whether we are in the middle of a catastrophe or on the verge of one, this money is desperately needed to support public education, public safety and public health programs. What we don't need is another tax break for corporations, another EFM, or another buddy of the governor privatizing public services for personal gain.

DonBee

Tue, May 17, 2011 : 10:53 a.m.

Sara - What are your sources for cuts to public health clinics? To date, I have seen nothing in the news anywhere and cannot in a Google search find any cuts on the web for such. The Developmentally disabled will get their services, regardless, both Federal and State law protect those services. It will be regular education that takes cuts in districts, not the Developmentally disabled. There are no private prisons that house Michigan inmates, and in almost every case, private prisons are going out of business, as states cut back prison populations and bring prisoners back to their own prisons, if you don't believe me look in the NPR archives. Laid off private workers - many of whom have exhausted their 99 week unemployment benefits would love jobs. The good news is that the automotive industry will probably add 10,000 to 20,000 jobs in the state. The bad news is we need another 200,000 jobs in the private sector in Michigan. But any new jobs with good wages are welcome. As to government assistance, as Tom Walsh pointed out on Sunday - in 2010 almost 1 dollar in 4 in total state income came from assistance programs, up from less than 6 percent in 1960. This shift from working to welfare is the greatest in the history of the country. Thank the "Health Reform Act" for adding $700 million in new Medicaid spending to the state budget, oh, and no money was sent with the requirements from Washington.

Roger Roth

Tue, May 17, 2011 : 2:02 a.m.

Just when my faith in politicians was going down the toilet. You go, Rick! A few months in office and already, $429 million more than expected!!!!!!!!! Is a state's bookkeeping so complicated that we can go from catastrophe to finding $429Million--during a depression--in a few weeks time? (Can anyone lend me a copy of Al Franken's book about liars?) What to do with the money? Write a $Million refund check for each of the largest 400 corps. in MI. The other $29Million, set aside for gasoline for state vehicles. That should last about a week. And to think I mistrusted that Republicans would put MI back on track.

trs80

Tue, May 17, 2011 : 12:53 p.m.

Are you serious? The money has nothing to do with Snyder.

DonBee

Tue, May 17, 2011 : 10:45 a.m.

Roger Roth - A large number of Michigan Businesses have done better than expected. The quarterly taxes that are paid by business go up and down based on the current economy. Would you, in November have projected the profits of GM and Ford that were announced a few weeks ago? Honestly?

Linda Peck

Tue, May 17, 2011 : 1:25 a.m.

I cannot make head nor tail out of this piece at all. Not enough information given and would it not take publishing the entire budget with projected updates to figure it out? If there is such a surplus, why oh why are we cutting so much from the school budgets that little children will be squeezed 60 to a class room? At least that is the scuttlebutt, which is about what this piece is, too.

DonBee

Tue, May 17, 2011 : 10:43 a.m.

Let's see Linda, the number of teachers in the AAPS AAEA bargaining unit is more than 1200 (exact numbers have never been released, privacy according to AAPS and the AAEA). There are (according to the "easy to use budget" released last spring - 889 teachers and teaching staff in all of the AAPS buildings (no newer numbers are available). The teacher to student ratio is 23.15 students to teachers across all the schools ("easy to use budget") The cuts are 70 teachers and ZERO administrators. That leaves the total number of teachers still unknown. The assumption I will make is the cuts will come directly from classroom teachers and not from non-classroom teachers (Curriculum development, etc) - so the result is a ratio of 25.6. If we take the whole teaching staff - teaching assistants, ESL, Music, Art, PE, et al. the old ratio is 18.94 to 1 and the new ratio would be 20.55. Now since all the numbers are more than a year out of date, they are probably wrong, but not so wrong that student counts would be 60 to a classroom.

AMOC

Tue, May 17, 2011 : 12:52 a.m.

Since Michigan charges its 6% sales tax on gasoline, but doesn't charge it on most food items, I wonder how much of this windfall is due to the gas price increases we've all been suffering with? I know I've been watching all my other spending, including on groceries, much more closely because gas costs so much more than it used to. I's agree with the earlier commenter who said that applying this to the highway maintenance & construction budget to unlock more Federal dollars is a no-brainer. Our roads and our construction workers NEED the work. Leveraging that money to double it, then spending it this construction season may mean more traffic jams, but also better roads going forward.

mojo

Thu, May 19, 2011 : 1:50 a.m.

And - Gas taxes are about $.60/gallon. Fill up with 20 gallons and you just paid $12.00 in taxes.

Edward R Murrow's Ghost

Wed, May 18, 2011 : 3:29 p.m.

"Michigan has two state gasoline taxes, one is a fixed amount per gallon, the other is the 6 percent sales tax." So it REALLY has but ONE gas tax. Sales tax is sales tax. Gas tax is gas tax. The gas tax goes into the transportation fund. The sales tax is split between the general fund and the school aid fund (per Prop A). Some people just have to make it up. Good Night and Good Luck

DonBee

Tue, May 17, 2011 : 10:33 a.m.

Carl Ebach - Michigan has two state gasoline taxes, one is a fixed amount per gallon, the other is the 6 percent sales tax. So as the price of gasoline goes up, so does the tax revenue. If you don't believe me check out: <a href="http://www.michigan.gov/ag/0,1607,7-164-17334_17362-93060--,00.html" rel='nofollow'>http://www.michigan.gov/ag/0,1607,7-164-17334_17362-93060--,00.html</a>

Carl Ebach

Tue, May 17, 2011 : 1:59 a.m.

The gas tax is a fixed amount per gallon not the 6% you have stated.

Carl Ebach

Tue, May 17, 2011 : 12:26 a.m.

Hey Gov it's been raining for 3 years!

Micky Mouse

Tue, May 17, 2011 : 1:49 p.m.

You must be talking about past Gov. . Maybe you can put away the umbrella.

David Briegel

Mon, May 16, 2011 : 11:47 p.m.

Aw, come on you guys, the only thing we need is more tax cuts. Especially targetted to the most upper tier. You know, the guys that pay ALL the tax. Ronnie would be proud as punch. Tax cuts are the solution to every problem! And Don, number 4 is a &quot;no brainer&quot; as we need all the highway and infrastructure help we can get. We should never, ever do anything so TeaPublican foolish as say no to the Fed money. And I really want you to look at this beautiful piece of swampland with a beautiful bridge included!

IAmProsperous

Mon, May 16, 2011 : 11:31 p.m.

When people are the bottom line instead of numbers on a page....then I will be interested in your economic discussions. When we take care of what is important (people, our communities) everyone prospers and the bottom line takes care of itself. But the more we as a culture concentrates on the bottom line as numbers on a page, the worst off it is for all. And here we are!

David Briegel

Mon, May 16, 2011 : 11:49 p.m.

You would really need to move to a civilized society. Ain't happenin' here! Tax cuts are the answer to every question!

mojo

Mon, May 16, 2011 : 11:08 p.m.

I would rather have jobs.

DonBee

Mon, May 16, 2011 : 11:04 p.m.

That's nice. We could: 1) Pay 10% of what we owe the Federal Government in principle on unemployment insurance 2) Pay 1/2 of what the increase in Medicaid is that was mandated but not funded by the Federal goverment 3) Pay 1% of the unfunded state pension plans 4) Cover the state portion of the Highway funds needed to unlock the full amount from the Federal Government 5) Make up for the decision NOT to tax pensions and NOT to cut all of the Earned Income Credit 6) Return 25% of the college cuts 7) Return a portion of the K-12 cuts 8) Restore the movie tax give back 9) Reduce the state income tax on individuals 10) Save it to cover next year's shortfall But it will only cover ONE of these items.

snapshot

Mon, May 16, 2011 : 10:47 p.m.

Don't forget to put away 222 million to pay for the interest on the bucks borrowed from the Feds for the unemployment extension benefits. 111 million per year and since this year was waived (thank Obama everyone) it'll be twice as much next year. Better yet, save it all and pay the principle off too. That would be good fiscal management and if we keep it up we might have money for classroom education in a few years.