LANSING, MI (AP)-- Overall tax collections are holding steady, but lower estimates in Michigan's general fund could impact Republican lawmakers' push to cut taxes or move new teachers to a 401(k)-only retirement plan.
The House Fiscal Agency said Monday that the multibillion-dollar school aid and general funds will have $69 million less this fiscal year than projected in January but $56 million more next fiscal year.
Higher-than-expected school aid collections of $364 million over the two years are estimated to be offset by $377 million less in general funds.
GOP legislators have proposed general spending that would total hundreds of millions of dollars below what Gov. Rick Snyder wants — potentially to cover the cost of closing pensions to newly hired teachers.
Economists will meet Wednesday to reach consensus revenue estimates.