Revenue projections for the current and upcoming fiscal years were increased at today’s Consensus Revenue Estimating Conference (CREC) in Lansing, giving the legislature more to work with during the budget process. Held in January and May, the CREC gathers economic experts to project the state of the economy in the upcoming years, as well as estimate revenue for the major tax areas in Michigan. The legislature will use today’s figures to begin the process of crafting the state budget for the upcoming 2020-2021 Fiscal Year as well as a possibly adopt a supplemental budget for the current fiscal year.
For the current fiscal year, projected General Fund-General Purpose (GF-GP) revenue was increased by $235.2 million from the May 2019 estimates, while School Aid Fund (SAF) revenue estimates were increased by $85.7 million. Likewise, May estimates for the 2020-2021 Fiscal Year were also increased. Experts estimate GF-GP revenue will be $274 million higher than prior estimates and SAF revenue should be $138 million more than previously projected.
Key points from the conference include:
As with every estimation there remain potential risks to the forecast, including:
Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.