Paul Egan | Detroit Free Press

LANSING – More road improvements? Pay down debt?

Those are among the options state lawmakers say they will explore, now that they have a few hundred million dollars more than anticipated to work with as they finalize the state budget for 2019.

For the state's general fund — Michigan government's main checking account — revenues will be up $156 million for 2018 and $72 million for 2019, compared with what was estimated in January, officials agreed at a twice-annual meeting held at the Capitol on Wednesday.

For the School Aid Fund, revenues will be up $160 million for 2018 and $110 million for 2019, compared with the January estimates, officials said.

The revised estimates amount to little more than a rounding error in the scope of the state's nearly $57-billion budget. But they should allow for increased spending on certain priority areas.

Budget director John Walsh said after the meeting the extra revenues are a mix of "one-time money," which should only be spent on one-time items such as a capital purchase or a specific project, and ongoing revenue, which can be used to boost ongoing programs.

The administration would like to see some of the extra revenue go into the state's Rainy Day Fund — designed to support state government during an economic downturn — and "a nice chunk" put into roads, Walsh said. The state could also accelerate some school safety spending and retire some debt, he said.

"The economy looks good and solid," but there are some warning signs "there could be some slowdown" on the horizon, Walsh said.

State budget and treasury officials met with the heads of the House Fiscal Agency and the Senate Fiscal Agency, plus key lawmakers from both parties, to reach an agreement on how much tax revenue the state can expect in 2018, 2019 and 2020.

Those numbers will be important in finalizing the state budget, which, under Republican Gov. Rick Snyder, typically happens around the end of May.

Officials last held a revenue estimating conference in January. Since than, higher-than-anticipated revenues from personal income taxes have more than offset lower-than-anticipated corporate income tax revenues, officials say.

Republicans have mentioned state debt reduction as a priority for spending any budget surplus, while Democrats say any extra money should go to repairing Michigan's crumbling roads.

Senate Majority Leader Arlan Meekhof, R-West Olive, "has always liked the idea of paying down debt," spokeswoman Amber McCann said. "Other priorities may include the school safety items we've discussed and whether or not we want to put some more money into roads."

Senate Minority Leader Jim Ananich, D-Flint, said any extra general fund money should all be spent on roads. "On the school aid side, I think we should fund what we proposed for school safety," including physical improvements to schools to increase safety and addition of school counselors, he said.

Lawmakers approved about $175 million in extra road spending earlier this year. At the time, some officials said pushing even more road spending into 2018 could create problems related to project planning and a lack of available contractors.