Potential Financial Surplus Appears As Books Close on 2010-2011

Although the final number will not be known until after the state’s audit is complete and the books are officially closed on fiscal year 2010-2011, both the House and Senate Fiscal Agencies reported estimates this week above the numbers from the May Revenue Estimating Conference.

The House Fiscal Agency’s numbers came out first, estimating revenue for 2010-2011 will run $285 million above the May forecast - $145 million in the School Aid Fund and $140 million in the General Fund. The Senate Fiscal Agency followed up with even higher estimates, $272.9 million in the School Aid Fund and $158.3 million in the General Fund for a total of roughly $431 million.

Many in Lansing are lining up to point out where the surplus funds should be directed while others are more interested in calling attention to yet existing liabilities. Senate Appropriations Committee Minority Vice Chair Glenn Anderson (D-Westland) has already begun stressing the importance of restoring funds to the K-12 per-pupil allowance – something Senate Appropriations Chair Roger Kahn (R-Saginaw) has called a “long shot.”

The Snyder Administration, while recognizing the positive news the potential surplus brings, stressed caution and pointed to the state’s ongoing unemployment debt, long-term pension liabilities and the Budget Stabilization or “rainy day” Fund.

posted by PAA Online , Friday, October 14, 2011 10:38 AM
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