MI Economy Gets Shot-in-the-Arm: revenues up sharply from January forecast due to federal stimulus
Results of Consensus Revenue Estimating Conference May 2021
State Treasurer Rachael Eubanks, State Budget Director Dave Massaron, Senate Fiscal Agency Director Chris Harkins and House Fiscal Agency Director Mary Ann Cleary today reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2021 and for the upcoming 2022 and 2023 fiscal years.
“The federal stimulus programs have continued to benefit our economy, producing a tremendous boost to our state’s future economic outlook and revenue picture,” State Treasurer Rachael Eubanks said. “Public health and the economy go together — the better the health situation the better the economy.
“As our vaccination rate continues to rise and our cases continue to fall, we are moving closer to normalcy. There is a great sense of optimism as we move forward this year.”
These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecasts, there are potential risks to the estimates agreed to today, including further COVID-19 outbreaks, national economic trends, and international economic issues.
“Michigan has effectively managed its way through the pandemic and as we now begin to emerge from the darkest days of the public health crisis, we are seeing a very positive revenue picture that gives us the opportunity to make some transformational investments in our state,” State Budget Director David Massaron said.
“With the amount of revenue now available to us, this is a once in a generation opportunity to make significant investments in our future and we need to make sure we get this budget right so we can enable Michigan to thrive in the years to come.”
Fiscal Year 2022 spans from Oct. 1, 2021, to Sept. 30, 2022, while Fiscal Year 2023 spans from Oct. 1, 2022, to Sept. 30, 2023.
Statement on Stronger Economic Outlook and Higher State Revenue Forecast from Governor Whitmer.
The May Consensus Revenue Estimating Conference’s detailed forecast, including presentations from today’s session, may be found on the House Fiscal Agency’s website.
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