Michigan could see an unexpected surplus of nearly $300 million for fiscal 2011, which ended Sept. 30.
House fiscal analysts recently estimated that the state’s school aid fund could see $145 million more than recent revenue estimates, and that the general fund could see $140 million more than expected. The last formal revenue estimates were released in May.
Income-tax receipts mark the largest increase, coming in 12.5% higher than expected in May, and 14.5% higher than fiscal 2010, according to the House Fiscal Agency. Sales tax revenue is up 3.4% over expectations, and business tax revenue is up 9.6%.
Democrats have said any extra money should be sent to public schools that saw cuts under the current 2012 budget. Republicans have said they want to use the money to pay off either some of the state’s pension debt, the federal unemployment insurance debt, or use it to build up the rainy-day fund.