Revenues Up from May Forecast due to Federal Stimulus
LANSING, Mich. – State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary today reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2022 and for the upcoming 2023 and 2024 fiscal years.
Overall Revenue Forecast (General Fund and School Aid Fund Combined)
|
May 2021 |
January 2022 |
Change fromMay to January |
|
|
FY 2022 |
$26.80 billion |
$28.53 billion |
$1.72 billion |
|
FY 2023 |
$27.70 billion |
$29.14 billion |
$1.40 billion |
General Fund
|
May 2021 |
January 2022 |
Change fromMay to January |
|
|
FY 2022 |
$11.67 billion |
$12.45 billion |
$776.6 million |
|
FY 2023 |
$12.27 billion |
$12.89 billion |
$621.4 million |
School Aid Fund
|
May 2021 |
January 2022 |
Change fromMay to January |
|
|
FY 2022 |
$15.13 billion |
$16.08 billion |
$947.2 million |
|
FY 2023 |
$15.43 billion |
$16.25 billion |
$819.0 million |
In addition to FY 2022 and FY 2023 forecasts, initial revenue estimates for FY 2024 were released.
|
General Fund |
School Aid Fund |
Overall |
|
|
FY 2024 |
$13.31 billion |
$16.56 billion |
$29.87 billion |
“Revenue growth continues to be strong as the economy recovers,” State Treasurer Rachael Eubanks said. “We are also still seeing the positive impacts of the federal stimulus programs. We expect growth rates to return to more typical levels as the support of the stimulus fades.”
These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to today, including further COVID-19 outbreaks, unexpected changes in the national economy, and international economic issues.
“Michiganders can be excited about the economic picture that was presented today and about the revenues we have available to us to build the budget, especially when you consider it was just under two years ago when the revenue estimates did not look good during those early days of the pandemic," State Budget Director Christopher Harkins said. "I do want to remind everyone, however, that much of this revenue is one-time in nature and should be used for one-time investments that keep our budget in balance for the long term. I am remaining mindful of the fact that revenues can still fluctuate and change quickly during a pandemic."
FY 2022 spans from Oct. 1, 2021, to Sept. 30, 2022, while FY 2023 spans from Oct. 1, 2022, to Sept. 30, 2023. FY 2024 begins on Oct. 1, 2023.
The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at Michigan.gov/CREC.
