Washtenaw County State Lawmakers Say Projected Revenue Declines Another Concern About Roads Plan

May 14, 2014

Michigan lawmakers will likely have less money than earlier projected to put into next year's budget.  The revenue estimating conference takes place Thursday, but the House Fiscal Agency is anticipating $873 million dollars less in state revenues for this year and next compared to the January conference.  

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Credit Andrew Cluley / 89.1 WEMU

State Representative David Rutledge thinks this adds to the need for the senate to amend a house approved plan to use about 400 million dollars from the general fund to fix roads.  Rutledge says more funding is needed to address road problems across the state and particularly in Southeastern Michigan.

Representative Jeff Irwin agrees that the revenue decline imperils the road funding plan.  He says the house estimate also includes a 50 million dollar decline in revenues for the school aid fund.

Representative Gretchen Driskell says the proposal currently being considered also doesn't include enough funding for public transit needs.

Rutledge says the the revenue projection reductions are based on lower income tax payments, a decrease in sales tax revenues, and unanticipated business tax credits.  The house projection estimates a $422 million decline in the current fiscal year and a $451 million drop for the budget year starting October 1st. 

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— Andrew Cluley is the Ann Arbor beat reporter, and anchor for 89.1 WEMU News. Contact him at 734.487.3363 or email him acluley@emich.edu.