Economists: no Mich deficit in 2010

LANSING, Mich. (AP) - Michigan economists say the state budget is in good shape for the current year, but they foresee big deficits in the 2011 budget.

The state treasurer and heads of the nonpartisan Senate andHouse fiscal agencies agreed Monday that the state will bring in enough tax revenue to cover the budget lawmakers passed this fall.

Senate Fiscal Agency director Gary Olson says that means school districts won't see additional cuts and the governor shouldn't have to issue an executive order trimming state spending.

But he warns the state faces a deficit of more than $1.6 billion in the budget that starts Oct. 1 because the state is less likely to get federal recovery money.