Snyder, lawmakers reach deal on budget framework

LEFT: Gov. Rick Snyder (AP Photo/Carlos Osorio) RIGHT: The state Capitol in Lansing, Mich. (AP Photo/Carlos Osorio, File)

LANSING, Mich. (AP) — Gov. Rick Snyder and Republican lawmakers have agreed on a framework for Michigan’s next budget that includes spending $400 million in general funds on transportation improvements.

In the “target” agreement signed Wednesday afternoon, the sides committed to transferring the general fund money to the transportation budget weeks after voters rejected a sales tax hike to trigger $1.2 billion more annually in road and bridge spending. The deal comes days after the administration and legislative economists agreed state revenues are higher than expected.

Still, fuel taxes aren’t generating enough for road repairs as people drive less and with more fuel-efficient cars.

Snyder and legislators also agreed to spend $25 million on movie incentives, half what the Republican governor proposed.

Legislative committees now must resolve differences in K-12 and other individual budgets.

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