CHICAGO — Michigan lawmakers sent Gov. Rick Snyder bills that patch a $336 million shortfall in the current year budget.
After being passed by the House two weeks ago, the Senate on Feb. 26 sent Snyder a measure that would shift $167 million from the school aid fund. The school aid fund was projected to have a $284 million surplus, according to reports.
Another bill would cut general fund spending by another $169 million. That includes cutting an $88.4 million payment to the Michigan Public School Employees' Retirement System this year, a payment that's considered optional under current law.
Snyder is expected to sign the legislation, which follows the footsteps of an executive order he issued in early February for reducing the current shortfall.
In January, fiscal officials warned the state would miss its general fund revenue projection by $325 million. The decline could fall to $500 million by the Oct. 31 end of the fiscal year, officials said.
Michigan faces another $532 million shortfall in fiscal 2016, according to the January revenue estimates. State officials blame the projection declines on the number of businesses cashing in on tax credits in fiscal 2015.
