Michigan's State Budget Faces Long-Term Problems

By: Associated Press
By: Associated Press

LANSING (AP) -- Michigan lawmakers this month will vote on proposals that would balance the state government budget headed into a new fiscal year Oct. 1.

The state will be helped with more than $1 billion in temporary federal aid for schools, health care programs for the poor and other programs. But Michigan and other states will face tough decisions about what to do with their budgets once the temporary federal aid runs out.

Michigan leaders plan to use other short-term approaches to solving the state's immediate budget problems. The approaches include a tax amnesty program.

Michigan's budget has been hurt by declining tax revenues during a long economic downturn.

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