© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Michigan Lawmakers Weigh Moving Teachers to 401(K) -Only Retirement Plan

state capitol building
WKAR File Photo

House: Revenue unchanged overall, but down in general fund. 

Overall tax collections are holding steady, but lower estimates in Michigan's general fund and higher projections in the school aid fund could impact Republican lawmakers' push to cut taxes or move new teachers to a 401(k)-only retirement plan.

The House Fiscal Agency said Monday that the education fund will have $364 million more over this fiscal year and next than projected in January, but it will be offset by $377 million less than expected in the general fund.

GOP legislators have proposed setting aside spending that Gov. Rick Snyder wants — potentially to cover the cost of closing pensions to new teachers or to cut the personal income tax.

Having more education dollars might help Republicans persuade Snyder to make the retirement change.

Economists will reach consensus revenue estimates Wednesday.

Related Content
Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!