LANSING -

Michigan's budget will have about $300 million more this year than state economists predicted in January, a combination of higher-than-expected tax payments and fewer people receiving Medicaid and other state services.

That came from Wednesday's revenue estimating conference in Lansing.

State budget director John Nixon says he much of the extra money may go into the state's rainy day fund or be set aside in case the state loses legal fights over collecting income taxes on public pensions or having state workers pay more of their pension costs.

Officials also estimate the state will have about $100 million more to spend in the budget year that starts Oct. 1.

Nixon says he doesn't think that will mean radical shifts in the budget bills lawmakers hope to finish by month's end.