LANSING – State budget officials are working on a proposed fix to the 2004-05 budget deficit that could be unveiled next week at the revenue estimating conference and the formal presentation of the 2005-06 proposed budget.
And what the form the fix will take is also not decided, although it could include an executive order cut along with a negative supplemental.
Currently officials are anticipating a need to cover an anticipated $350 million shortfall in revenues – slightly improved from prior estimates – for the fiscal year, but that number could be changed soon.
It will also mark the third consecutive budget that Governor Jennifer Granholm has had to implement a mid-year fix because the state’s economy continues to lag the rest of the nation.
The revenue estimating conference between Treasurer Jay Rising, Senate Fiscal Agency Director Gary Olson and House Fiscal Agency Director Mitch Bean is scheduled for January 13, and at that time a new 2004-05 fiscal year estimate will be set.
At a special revenue estimating conference in December, the three fiscal heads anticipated a total budget shortfall in both the general fund and School Aid Fund of some $370 million. But at that time several key pieces of information were still lacking, including revenue figures for both November and December.
November revenue figures showed a significant gain in revenues over November 2003, which cheered officials. That cheer was dampened by a November unemployment figure that showed joblessness picking up in the state after it had declined in October.
December revenue figures are not yet final, but preliminary indications are they may be ahead of December 2003.
This story was provided by content partner, Gongwer News Service. To subscribe, click on Gongwer.Com
