State budgets have been rebounding much faster than most city budgets (for many reasons: spending cuts achieved through attrition are finally appearing on the balance sheet, income taxes have begun to recover faster than housing values, etc.). Accordingly, states that were experiencing “fiscal emergencies” just a few months ago are now facing surpluses as they begin to budget for the coming fiscal year. As could be expected, tax cuts are first on the table (despite the fact that it wasn’t tax increases but spending cuts that contributed most to the surplus).

LANSING — Gov. Rick Snyder and lawmakers have nearly $1 billion more than expected when crafting Michigan’s next budget.

The Snyder administration and economists today agreed the state will take about $975 million more in tax revenue from last fiscal year through the next budget year than was forecast eight months ago.

The debate now will ramp up over what to do with the surplus. Tax cuts, more road repairs and extra money for education are on the table.

Read: Michigan has nearly $1B more than expected for budget | Crains Detroit Business. (January 10, 2014)