LANSING -- We are a far cry from Gov. Snyder's budget address at this time last year.

That's when the freshly elected Snyder proposed sweeping tax reforms and cuts to services.

Thursday's budget proposal at the state Capitol should be much less of a bombshell.

"Just in education and local government alone -- last year had cuts of $840 million," said Jeff Williams, director of Public Sector Consultants. "This year we're looking at a surplus of about $700 million."

Williams points out that surplus is actually only about 2 percent of the state's $40 billion-plus budget.

But he's expecting two highlights in Snyder's budget proposal -- K-12/higher education, as well as the state's crumbling infrastructure.

"The governor could make a moderate investment in roads and kind of critical infrastructure, but the true fix would be finding new, sustainable sources of revenue," Williams said about the transportation angle.

The governor is expected to push a $1.4 billion plan to raise transportation funding with higher registration fees and a tax on the wholesale price of gas.

But how about education? K-12 was cut about 2 percent this school year, while public universities saw a 15 percent reduction.

Gongwer reported Wednesday the governor will propose a 0.8 percent increase for K-12, and about 3 percent for public universities.

We caught up with Lt. Gov. Brian Calley at a Wednesday night event in St. Johns.

He wouldn't share many details, but did hint what he and the governor will prioritize.

"I would say that education, health care and public safety are all very, very critical areas of what the government does," he said, noting that increases in funding will likely be tied to incentives. School districts, for instance, might have to show a willingness to find new ways to measure their students' success.

But he suggested there could also be more cuts, though he wouldn't say to which departments.

"It's possible to lower the cost of government without lowering services that are provided by government," Calley said.