Michigan Officials Report Revenue Projects Way Off - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Michigan Officials Report Revenue Projects Way Off

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LANSING, MI (WLNS) - The economic fallout from Michigan’s harsh winter descended on the state capitol Thursday with officials reporting their revenue projections were off by over a half a billion dollars.

With less money on hand, will that mean less money to fix the roads? We asked 6 News Capitol Correspondent Tim Skubick, who reports just the opposite is likely to happen.

State economists contend, in part, the ice and snow that dominated the state last winter resulted in consumers staying home and now that is dominating the budget process here.

Last January when these state bean counters met, they projected a $1.1 billion surplus.  Now they are saying there is no surplus and the state over the next two years could actually lose another $600 million or so.

The governor also blames the federal government for the missed projection.

“It was really because of an issue with the federal tax a year ago or so, that made it very difficult to estimate and we'll just make adjustments because we haven’t finalized the budget,” said Governor Rick Snyder, (r), Michigan.

Reporter: ”So customers are not going to see any hits?”

Governor Snyder: “Well again, we’re going to have to look at the budget and we’ll have to scale some things back.”

With that scaling back, does that mean lawmakers will have to slice and dice plans to pour more than $450 million into road repairs? The answer is no.

In fact this senator wants to spend more than that.

Reporter: “Next week you're going to propose more money for the roads beyond the $450?

“Yeah, absolutely. I think it’s the right thing to do. I think it’s the right time,” said State Senator Randy Richardville, (r), senate gop leader.

Reporter: “What’s your new revenue source? Or old revenue source?”

Senator Richardville: “We'll roll those out, there's more than one.”

Reporter: “Give me a hint. Give me one.”

Senator Richardville: “You'll be paying some of it.”

The senator may be looking at a higher wholesale sales tax on gas and eliminating a discount on your car registration fees.

Meanwhile the governor argues, despite this apparent bad news, the state’s economy is sound and growing. But democrats argue the short fall is really the result of the governor’s lousy tax policies.

To which he says, “The economy’s going strong in Michigan. If you look at all the stats, they’ll back that up.”

Let's just say the democrats disagree with that analysis big time.
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