State Budget Surplus Won’t Last Long

With the national economy taking a nosedive, Michigan is actually doing fairly well to stay out of the red.

The head of the state House’s fiscal agency says Michigan should have a slight budget surplus from fiscal 2008.

The fiscal year ended Tuesday of last week.

However, he says he’s pretty sure that won’t be the case this year; more budget cuts look likely.

The turmoil on Wall Street, trouble in the auto industry and a high number of home foreclosures could cause less state tax money to come in than expected.

Both state Senate Republicans and state House Democrats are pushing the idea of tax cuts, and those may bring in even less money for state and local government.

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