By Gary S. Olson, Senior Policy Fellow, Public Sector Consultants
After a decade of heated debates in Lansing on the elimination of Michigan state budget deficits, Governor Rick Snyder and the Michigan Legislature are now faced with a new challenge: what to do about the unanticipated budget surpluses in the fiscal year (FY) 2012 General Fund/General Purpose and School Aid Fund budgets.
This paper discusses options for the use of the budget surplus and presents commentary on the proper use of the unanticipated year-end budget balances.