State Ends Year With Money in the Bank

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State budget officials are reporting a surplus of $155 million for the fiscal year that ended in September.

It's good news, but Governor Granholm and state lawmakers still are facing large deficits in the current budget year and the one that begins October first 2005.

Last year's general fund had a little more than $81 million left over, and the School Aid fund had a $74 million surplus.

Both surpluses were transferred to rainy day accounts for the respective funds.

The current general fund could be short by up to $450 million.

The state spending plan for the budget year that starts October 2005 is projected to be short, by about $1 billion.