(The Center Square) – Michigan’s budget experts released a consensus on revised economic and revenue figures for the remainder of fiscal year 2024, the upcoming 2025 fiscal year and the initial forecast for the 2026 fiscal year.
The consensus shows a $13.2 billion balance in the General Fund for fiscal year 2025 and a $18.2 billion balance in the School Aid Fund. The estimate shows a $14.7 billion balance in the General Fund and $18.7 billion in the School Aid Fund for fiscal year 2026.
State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers, and House Fiscal Agency Director Mary Ann Cleary announced the numbers.
“Michigan’s economy and revenues are strong and stable, laying the groundwork for the upcoming budget process,” Eubanks said in a statement. “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.”
These revenue estimates are based on the most recent economic projections and forecasting models and don’t account for unexpected changes in the national economy and international economic issues.
“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,” State Budget Director Jen Flood said in a statement. “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.”
The fiscal year 2024 spans from Oct. 1, 2023, to Sept. 30, 2024, while the fiscal year 2025 spans from Oct. 1, 2024, to Sept. 30, 2025. Fiscal year 2026 begins Oct. 1, 2025.
Rep. Sarah Lightner, R-Springport, said the numbers mean that Michigan should cut taxes for state residents instead of continuing to increase spending.
“The latest revenue estimates clearly show that there’s absolutely no reason to impose higher taxes on the people of Michigan,” Lightner said in a statement.
“The role of state government isn’t to spend all of people’s money. Lower taxes mean people keep more of the paychecks they earn, which helps them afford the everyday cost of living. With higher-than-expected revenue in Michigan, we can fund government services and sustain a tax cut.
Michigan’s 2024 budget is a record $82 billion.
“Even the governor has acknowledged the need to help families struggling with inflation. Let’s support that sentiment, cut the income tax rate back to 4.05%, and let families keep more of their paychecks.”
