Michigan state budget (2011-2012)

Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

On June 21, 2011, Snyder signed the fiscal year 2012 $47 billion budget into law. The two budget bills signed by the governor were House Bill 4526 and House Bill 4325.

In fiscal year 2012, the state deposited $362.7 million into its emergency fund, a fund that in fiscal year 2011 had a balance of only $2.2 million.

Before the budget was signed into law, the state faced a projected $1.85 billion deficit in fiscal year 2012.

As of 2011, the state received about $400 million a week from the federal government, which was approximately 44 percent of the total state budget.

Governor's proposed budget

In February 2011, Governor Snyder introduced a $45 billion budget intended to close a $2 billion budget deficit for 2012. The budget included a series of cuts in several state departments. Snyder wanted lawmakers to cut the state budget by $1.5 billion, boost income tax revenue by more than $1.7 billion and cut business taxes by $1.8 billion.

Central to the budget was a reshaping of tax policy that eliminated the state's complex business tax and replaced it with a flat six percent corporate-profit tax that would raise about $1 billion less revenue.

He later revised his original pension tax proposal, calling instead for raising about $300 million through retiree income tax changes. That plan was passed by the House Tax Policy Committee on April 27, 2011.