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State budget deadline quickly approaches

Michigan lawmakers continue to push forward on passing the state’s budget for the next fiscal year, hoping to reach a self-declared June 1 deadline.

Conference committees formed to flesh out details of the budget have come to agreement on most of the 17 state agencies included, but details have yet to be worked out on higher education and school aid funding.

Gov. Rick Snyder proposed the $48.2 billion 2013 fiscal year budget recommendation earlier this year, coming off of a new state surplus and a vow to make Michigan stronger with long-term budget obligations.

Snyder and Michigan legislative leaders reached a funding agreement last week.

“(The agreement) sends another strong signal to our citizens and job providers that we have our fiscal house in order,” Snyder said.

Last year’s budget totaled about $47.5 billion. The state is looking at about a $400 million surplus, some of which will go toward education and welfare. About $90 million will be cut from personal income taxes.

House of Representatives Speaker Jase Bolger said in a statement that the Legislature hopes to complete the budget by Friday to ensure long-term financial stability.

Snyder’s proposal invests $36 million in state universities from the general fund, a 3 percent funding increase. State funding for MSU will increase 1.4 percent, but the budget recommendation also notes that universities that hold tuition down will receive greater funding. MSU continues to be under scrutiny for adding a health care mandate cost to student tuition, which could cost the university millions of dollars from the state.

MSU Vice President for Governmental Affairs Mark Burnham has said if the state revokes more funding for MSU, tuition might rise again.

According to the Michigan Education Dashboard, university tuition now is 17 percent of the median family income, which the governor has labeled as a declining performance.

An additional $180 million of the proposed state budget is invested in public school employee retirement programs and other support for K-12 schools.

The budget also provides for a one-time film incentive appropriation funding totaled at $25 million.

When the conference committees have reconciled differences in the Senate and House budgets, the appropriation bills must be approved by both houses. A final copy will be presented to the governor for signing, and the new fiscal year budget will take effect Oct. 1.

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