Is the elimination of a tax cut being considered?
Governor Granholm has proposed pausing a rollback in the state income tax rate that is scheduled to go into effect on January 1, 2004, and putting those revenues toward the School Aid Fund deficit. This would mean that most schools would face a cut in funding of about $70 per student, rather than $196 if the rollback is not paused. This rollback would save workers about $29 a year in taxes. It would save the average Michigan family of four about $43 a year. If the rollback was paused, it would generate about $115 million in revenue for the state. That revenue could be put toward the $920 million deficit; however, it would only slightly soften the blow of budget cuts.
