LANSING, Mich. (AP) — Michigan's budget will have about $300 million more this year than predicted in January, a combination of higher-than-expected tax payments and fewer people receiving Medicaid and welfare benefits, state economists said Wednesday.

Much of the extra money may go into Michigan'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, budget director John Nixon said.

Officials also estimate the state will have about $100 million more to spend in the budget year that starts Oct. 1. That again comes from lower caseloads, along with $114.5 million more than expected for the state's $11 billion school aid fund, offset by $64.7 million less for the state's $9 billion general fund.