DETROIT -

When Michigan Gov. Rick Snyder dishes the details on his planned budget Wednesday morning, he goes in with close to a $1 billion surplus -- a nice problem to have.

A lot has been said about how to spend it. For starters, the "Tough Nerd" says it's going to K through 12.

"In terms of K through 12, there's going to be a significant increase because we do have a surplus, and that's an area to invest," Snyder said. "But I've been a strong investor the last three years."

What does that mean in actual dollars?

"I'm going to recommend an increase that will be more than $1 billion compared to the year before I took office, just for one year," said the governor.

The most hot-button issue in Lansing right now is a proposed tax cut for everybody. State legislatures want to roll back the state income tax from 4.25 percent to 3.9 percent. Gov. Snyder is not a fan of that plan but will propose a targeted tax cut Wednesday morning.

"I think hopefully people will be pleased to say this is really focused in on people essentially making $60,000 or less," he said.

Read more: What will Michigan do with $971 million budget surplus?