LANSING — Michigan’s economic outlook is good according to economists and other experts as the state’s non-partisan House and Senate Fiscal Agencies expect $31.5 billion in tax revenue in the current fiscal year and $32.3 billion next year.
Economist Gabriel Ehrlich with the University of Michigan stated that Michigan’s employment has either fully recovered from the COVID-19 pandemic or is getting close. He stated that the Grand Rapids area is showing the strongest demand.
Touting Democratic leadership, Speaker of the House Joe Tate (D – Detroit) stated, “We crafted a responsible plan for Michigan that allowed us to put money back into the hands of working families and return thousands of hard-earned dollars to older adults without sacrificing programs and services that benefit millions of residents.”
A report from the State Treasurer, Senate Fiscal Agency Director and House Fiscal Agency Director declared, ““Michigan’s economy and revenues are strong and stable, laying the groundwork for the upcoming budget process. Confidence in our economy is expected to increase with lower inflation, lower interest rates, lower gas prices, and low unemployment. People are going to feel better and better about the economy as we move into 2024.”
Reacting to the numbers, State Budget Director Jen Flood stated, “Under Gov. Whitmer’s leadership we’ve passed a balanced budget on time, every year; we’ve built up a record balance in the rainy-day fund; and paid off nearly $20 billion in debt. Following today’s conference, we’ll finalize the Governor’s budget proposal which will continue to prioritize lowering costs, investing in kids, and growing jobs and economy.”
FY 2024 spans from Oct. 1, 2023, to Sept. 30, 2024, while FY 2025 spans from Oct. 1, 2024, to Sept. 30, 2025. FY 2026 begins on Oct. 1, 2025.
The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at www.michigan.gov/crec.
