LANSING, Mich. (AP) -- Michigan's economy will keep growing but at a slower rate, resulting in stable tax revenue growth at a time new Gov. Gretchen Whitmer begins working to put her imprint on state spending.
That is among the takeaways from Friday's semiannual meeting where the state treasurer and legislative fiscal experts agreed to consensus economic and tax projections.
“Today’s agreement shows the economy is projected to grow at a modest pace,” State Treasurer Rachael Eubanks said. “While down from last fiscal year, General Fund estimates are up from May due to higher projected growth in individual and corporate income taxes.”
The Democratic governor will use the numbers when drafting her first budget proposal, due to the Republican-led Legislature in March.
Economists gave a largely positive update to state officials but also warned of risks. U.S. auto sales are expected to dip, impacting a state that is bracing for job cuts at General Motors.
“When I started in the Legislature almost 20 years ago, the General Fund total was almost exactly what we just announced today,” State Budget Director Chris Kolb said. “General Fund revenues have remained flat over a long period of time, and so we have a fundamental problem of constrained resources and additional funding needed to address real problems for Michigan’s residents.”
Economists said Michigan's strong labor market should help some workers who lose their jobs find work more quickly.