LANSING, Mich. (AP) — State economists delivered their final economic forecast this year for Michigan and indicated that tax revenue will continue to stabilize, which they see as a positive development following years of record surpluses driven by pandemic-related funds.
Michigan lawmakers are working to finalize the state budget ahead of their self-imposed July 1 deadline and Friday’s outlook on the state’s economy and tax revenue projections gives lawmakers a roadmap for the available funds for the fiscal year starting Oct. 1 and beyond. An outlook was also provided in January as lawmakers began the budget process, but Friday’s was more finalized.
This year’s tax revenue is projected to be approximately $31.7 billion, reflecting a slight increase from January’s estimate. Revenues are anticipated to grow gradually, reaching $32.4 billion for the fiscal year starting October 1. The following year, a further increase of about 3.2% is expected.