Economy
10:19 am
Fri January 4, 2013

2012 funds to be used to balance 2013 budget in MI

LANSING, MI (AP)--   Michigan's government may close last budget year with $1.2 billion on hand, but it will be needed to balance the current budget. 

That's one conclusion in a report from the Senate Fiscal Agency. The report dated last week will be one of three used when state officials agree on a revenue forecast January 11.

The forecast will be used to draft a new state budget starting in October and to revise spending in the current budget.

Analysts say Michigan's main funds will bring in $19.8 billion this budget year, or $372 million less than projected last May.

They warn school spending may have to be cut $150 per student next year. The reduction could be avoided if courts free up school employees' contributions toward retiree health care sitting in escrow.