Michigan Gov. Rick Snyder and lawmakers will have hundreds of millions of dollars more to budget than they expected at the turn of the year.
His administration and legislative on Wednesday agreed to revised revenue estimates.
Tax collections for Michigan's two main funds are projected to be $315 million higher than expected in the current fiscal year and $182 million higher in the next budget year.
Republican leaders could use the additional money to boost savings, pay down debt or for spending priorities. Democrats say it should go to road work.
The next budget is expected to be finalized in coming weeks.
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