MichiganRadio

State Could Fall Off "Budget Cliff" If It Misuses Federal Stimulus Money ANN ARBOR, MI (Michigan Radio) -
A non-profit think tank says Michigan will fall off a budget "cliff" if it uses federal stimulus money to obscure its chronic money problems. Craig Thiel (theel) is a researcher with the Citizens Research Council of Michigan. He says the state will get about fifteen billion dollars from the federal government, but the money will last only two years. He says state leaders mustn't ignore the state's declining revenues and rising costs.


"It took time to get to where we're at, it will take time to get out of the problem. These dollars that are being provided by the federal government provide us with just that - time."


Thiel says the state may need to gradually increase the state income tax, or begin taxing services.

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