Michigan budget outlook is stable, risks remain

Published January 12, 2013 12:26am ET



LANSING, Mich. (AP) — Officials agreed Friday to state budget figures for Michigan that could mean no major cuts next fiscal year but no quick return to past spending levels in some areas, either, as the state enters its fourth year of modest economic growth after a decade-long recession.

Though revenue is expected to be lower this fiscal year than previous projections, that is mostly because of a business tax cut approved in 2011 by Republican lawmakers and Gov. Rick Snyder. Budget director John Nixon said 2012 changes such as the decision to speed up a reduction in the state income tax also were accounted for in the current spending plan.

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