LANSING – Governor Rick Snyder made only two policy-based vetoes in signing the omnibus budget bills Tuesday, and he left in provisions that would arguably prevent spending on a new bridge to Canada.
Snyder and legislative leaders praised the budget for being largely completed by June 1 and for including both contributions to the state’s rainy day fund and support for tax cuts.
The budget overall provides $49 billion. The departmental budget (HB 5365 ) includes $34.36 billion, $7.51 billion general fund.
The education budget (HB 5372 ), which includes funding for K-12, community colleges and universities, totals $14.64 billion, including $11.36 billion School Aid Fund and $1.48 billion general fund.
And the budget, as signed, is balanced and complete, Snyder said.
“Last year was remarkable not only because of how fast we got it done, but the quality,” he said. “We did it again this year.”
Among the highlights was money deposited in the state’s rainy day fund and funds for children’s dental services, both of which Snyder mentioned several times during the press event where he signed the budgets.
For House Speaker Jase Bolger (R-Marshall), the highlight was the tax cuts. “It’s a great day because the biggest winners in the budget are Michigan’s hard-working taxpayers,” he said.
The governor did veto six items in the departmental bill, but three of those were because he said the money the Legislature approved was not actually there to spend. A fourth he said was duplicative.
Snyder did reject $1 million for a before- and after-school program “because it is not prudent to establish an ongoing program utilizing one-time revenues.”
He also rejected $80,000 for consultation education and training grants for the mining industry because it gave preferential treatment to a particular industry.
Snyder left in language that would prohibit spending on the New International Trade Crossing without legislative approval. He said the provision was unenforceable, but also was unneeded.
“We have a difference of points of view of the enforceability of boilerplate language,” he said.
The agreement to build the bridge, he again said, would not require any state funds.
He singled out several other provisions he said were unenforceable.
While the budget includes funding for a cut in the income tax rate, to 4.25 percent from 4.35 percent starting October 1, and an increase in the personal exemption to $3,950 from $3,700, Snyder said a tax cut that would not make its way back in is a restoration of the pension credit.
“It was not something that really should exist,” he said of the credit. “It’s not fair to young people or seniors with other forms of income.”
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