GOP leaders still focused on pensions after revenues revised

May 16, 2017

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Republican legislative leaders remain committed to closing the pension system to new teachers and instead giving them a 401(k) after getting mixed news about tax revenues.

Legislative fiscal agencies say school aid collections will be between $286 million and $364 million higher this fiscal year and next than was projected in January.

But the general fund - Michigan's other main account - will have between $377 million and $492 million less than expected. GOP lawmakers have left uncommitted hundreds of millions of dollars to potentially transition newly hired teachers away from a pension. Gov. Rick Snyder has reservations. 

A spokeswoman for Senate Majority Leader Arlan Meekhof said Tuesday the new numbers aren't a surprise and the Senate set aside money for retirement changes and to provide flexibility in budget talks.