A new Senate Fiscal Agency reports shows that Gov.-elect Rick Snyder and his team have a tougher job than expected when it comes to balancing the budget for the upcoming fiscal year.
The report shows that the state faces a $1.85 billion shortfall – up from an earlier projection of $1.6 billion for the fiscal year beginning Oct. 1, 2011.
That means Snyder will have to scramble all that much harder to put the budget in the black.
But that may be only half the battle. Last week, Snyder staff members said he is still intent on proposing a massive overhaul of the Michigan Business Tax as part of his proposed executive budget. He earlier had estimated the proposal, at least initially, would reduce revenues by $1.5 billion, but his team members now say it likely will be less.
No matter what the scenario, Snyder’s budget axe likely will swing down hard on at least some state services.
