State leaders finalize overall spending deal

Michigan Capitol Building, rotunda
This file photo shows the interior of rotunda dome at the state Capitol Building in Lansing, Mich.

LANSING, Mich. (AP) — Gov. Rick Snyder’s administration and top lawmakers have finalized a budget agreement that would spend more to address debt in the teacher retirement system and to fix aging infrastructure.

The new spending targets were signed Monday by state budget director Al Pscholka and chairs of the House and Senate budget committees. The agreement sets the stage for lawmakers to take final votes this week before a summer recess.

GOP legislative leaders had held in reserve nearly a half-billion dollars while negotiating legislation to steer more newly hired school employees into a 401(k)-only retirement plan.

The deal struck Monday calls for spending $255 million to reduce unfunded liabilities in a legacy pension plan, putting $35 million in a statewide infrastructure fund and adding $150 million to savings.