The state will officially close the books on the last fiscal year this week. But not without some controversy on the fate of an income tax rollback.
The book closing will almost certainly show Michigan is running a large enough surplus to trigger an automatic income tax rate cut. That surplus is largely due to a windfall of federal recovery funds. An attorney general's opinion says because of the fact that it's due to a one-time funding sources, it's a one-time tax cut.
State Treasurer Rachel Eubanks says that's important to know as Michigan charts out spending plans. "It's a big change that impacts millions of people, so it's absolutely critical that we get it right."
But Republicans like Senate Minority Leader Aric Nesbitt say that opinion got it wrong. "I'd imagine there will be lawsuits filed."
Nesbitt says, if and when that happens, he expects a court will say the tax cut is permanent.
