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Economists revise Michigan revenue estimates upward by $5B

Michigan’s short-term budget outlook is even rosier, after economists revised projected tax revenues upward by a combined $5 billion over two years
File photo of money.
File photo of money.(Arizona's Family)
Published: May. 20, 2022 at 1:07 PM EDT
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LANSING, Mich. (AP) — Michigan’s short-term budget outlook became even rosier Friday, when economists revised projected tax revenues upward by a combined $5 billion over two years.

The new estimates will be used by Democratic Gov. Gretchen Whitmer and the Republican-led Legislature to finalize the next state spending plan. Both sides want to cut taxes but differ over how to do it.

Revenues in the school aid and general funds for the current fiscal year are $3 billion higher than was forecast in January. For the 2022-23 budget year, they are up $2 billion from the estimate four months ago.

“At a time when we’re seeing very good news today, I think we just have to continue to maintain a fair sense of caution as we look at the medium- and longer-term as we’re dealing with really unprecedented territory in this uncertain economy,” state Treasurer Rachael Eubanks said.