It's not even Thanksgiving yet, but Governor Snyder got an early Christmas present from the Michigan Supreme Court Friday.

The court ruled 4-3 that a new tax on public pensions, for the most part, did not violate Michigan's constitution and can go forward.

The tax applies the state's personal income tax rate of 4.35% to the pensions of retirees 67 or younger.

In total, the new pension tax was expected to bring in $230 million for the current year's budget, but the state Supreme Court didn't leave the tax completely intact. It struck down a part of the law that phased out exemptions for those receiving higher pension incomes.

The court said that constituted a graduated income tax, which is not constitutional. Losing that provision will cost the state an estimated $60 million out of this year's budget.

Lt. Governor Brian Calley told WILX Friday that the loss of that money shouldn't require the state to make major changes.

Mary Pollock, a legislative representative with the State Employee Retirees Association, says the group and other retiree and public employee groups that oppose the tax are considering challenging the decision in federal court. It's unclear when that would happen.