Lawmakers believe the key to a stable spending plan is to invest areas that will turn Michigan around.

"Such as our infrastructure, like roads and bridges, and education, that includes K-12, community college, higher education," says Rep. Joan Bauer, D-Lansing. "Those are the things we need to be sure to fund appropriately."

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"A day ahead of schedule. I'm glad of that," says Rep. Joan Bauer, D-Lansing.

But members of the legislature didn't spend much time celebrating. They know the budget picture looks even worse next year.

"We'll be facing for the following year, a budget deficit of about $1.5 billion," Bauer says.

Bauer tells us the state's lifeline this year was stimulus money. Michigan received about $ 1 billion in federal grants -- more than $350 million of that went to Medicaid, another $300 million supported schools.

"Every school district in this state needs to realize that this is one-time money," says Sen. Majority Leader Mike Bishop. They can't rely on it in the future."

Bishop is term-limited. He says the incoming governor and legislature need to work harder and faster to avoid recurring problems.

"My recommendation to the next administration is the have a solid 100-day plan, to come before the legislature and lead," says Bishop.

Lawmakers believe the key to a stable spending plan is to invest in areas that will turn Michigan around.
"Such as our infrastructure, like roads and bridges, and education, that includes K-12, community college, higher education," says Bauer. "Those are the things we need to be sure to fund appropriately."

Members of both chambers agree recovery is slow, but the state is headed in the right direction.