LANSING, Mich. (AP) — As Republican lawmakers push for an income tax cut, Gov. Rick Snyder instead will propose growing Michigan’s savings account to $1 billion.
State budget director Al Pscholka told The Associated Press Tuesday that Snyder wants to add a “sizable” $260 million to the budget stabilization, or rainy day, fund in the next fiscal year. It would be the largest deposit since Snyder’s first year in office.
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The Republican will unveil his budget plan Wednesday.
Pscholka says it’s smart to save money because of “one-time” tax revenues and looming budget pressures.
Lawmakers voted to permanently shift general funds to road repairs starting in 2018. Other squeezes include Medicaid expansion costs and the phase-out of business equipment taxes.
Snyder also will propose directing $1.2 billion to the Public School Employees Retirement System.