State Budget Note 2011-02 ( July 2011 ) 13 pages
The State of Michigan’s New Fiscal Plan
With Governor Snyder’s signing of the FY2012 state budget on June 21, the final piece of the state’s new fiscal plan is now officially in place. The plan was crafted against a backdrop of an improving state economy and growing state revenues, in part making it easier to complete in a timely fashion. It consists of: 1) a revamped state tax structure, 2) a spending plan that balances ongoing spending and resources mainly through significant appropriation reductions; 3) a down payment on future long-term obligations; and 4) a deposit in the state’s rainy day fund. Major pieces of the plan will come on-line in the fall, including the budget on October 1, while many of the tax changes take effect on January 1, 2012.