LANSING, Mich. -- Michigan is celebrating a year-end surprise.

The state found more than $1 billion in extra funds!

Here's how the numbers break down:

• $500 million in extra revenue
  
• $500 million in school funds
  
• $200 million that state agencies did not spend
  

So what is the state going to do with the extra cash?

"I just would remind folks we also have long-term debt that is not paid down. If we continue to pay that down, that gets us more and more structural balance for the long-term, which is what we want," said Kurt Weiss from the Department of Technology, Management, & Budget.

The state will not know the exact amount of the surplus until mid-January.