On February 11th, Governor Snyder presented his recommendations for the Fiscal Year 2015-2016 budget. This year presents unique challenges due to a shortfall created by MEGA tax credits issued under the Granholm and Engler administrations (see below). Approximately $500 million will need to be cut to offset the costs of the tax credits.
More than half of the deficit will be addressed through reallocating unused funds that will not impact any programs or services. $100 million will be saved this fiscal year due to Medicaid caseload reductions.
That leaves an additional $200 million to be solved through spending reductions. The Michigan Legislature is currently working on completing the budget by June 1st. My colleagues and I are prepared to make the tough choices to get our state back on track.