Public Media from Michigan State University

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

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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.

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