August 18, 2005

State's revenue outlook brighter, but budget far from fixed

Michigan\'s economy is \"stabilizing,\" but predicted growth for next year won\'t allow Gov. Jennifer Granholm and lawmakers to avoid difficult budget decisions in the weeks ahead. State economists Wednesday predicted that modest summer revenue growth since previous estimates in May will add about $69 million in fiscal 2005 and $67 million in fiscal 2006. The amounts are meager in the context of a combined $19 billion budget for discretionary state spending and aid to local public schools…Republicans also proposed a redistribution of state aid to universities that would punish better-funded schools in predominantly Democratic areas, Northern Michigan University and Wayne State University . Granholm opposes both cuts. Additional state aid could be used to pursue funding equity without cutting NMU and WSU, said Michael Boulus, a higher education lobbyist.

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