Purse strings just got tighter in Michigan

It was the proverbial good news-bad news scenario.

And as has been the case lately in Michigan, it was more bad news than good news.

According to the Detroit Free Press, "A $454 million deficit looms for the state general fund, according to a report Tuesday by the nonpartisan Senate Fiscal Agency. Revenues from taxes, fees and money transfers will be 5.7 percent below approved spending for the rest of the fiscal year that ends Sept. 30."

That means lawmakers who are wrestling with cuts for the fiscal year 2011 budget need to go back to the drawing board on the current FY 2010 spending plan for additional cuts. For example, employees should expect to see furlough days -- perhaps many.

The good news? The same report showed that school aid revenue is up for the fiscal year by about $255 million compared to January estimates. This is due to better-than-expected sales tax revenue.

That may ease pressure on lawmakers who are considering cuts in per-pupil spending – and may even allow little Jimmy a new school text book next fall.