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FOR IMMEDIATE RELEASE
January 12, 2024
Contact:?Ron Leix, Treasury, 517-335-2167
Economy Strong and Stable, Revenues Slightly Up from May Forecast?
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) 2024, the upcoming 2025 fiscal year and the initial forecast for the 2026 fiscal year.??
Overall Revenue Forecast (General Fund and School Aid Fund Combined)?
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Fiscal Year?
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May 2023?
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January 2024?
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Change from May to January?
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FY 2024?
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$31.13 billion?
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$31.54 billion?
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$418 million?
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FY 2025?
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$32.18 billion?
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$32.33 billion?
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$147 million?
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Fiscal Year?
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May 2023?
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January 2024?
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Change from May to January?
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FY 2024?
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$13.24 billion?
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$13.60 billion?
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$359 million?
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FY 2025?
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$13.92 billion?
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$14.02 billion?
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$106 million?
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Fiscal Year?
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May 2023?
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January 2024?
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Change from May to January?
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FY 2024?
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$17.89 billion?
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$17.95 billion?
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$59 million?
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FY 2025?
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$18.27 billion?
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$18.31 billion?
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$41 million?
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In addition to FY 2024 and FY 2025forecasts, initial revenue estimates for FY 2026 were released.?
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Fiscal Year?
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General Fund?
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School Aid Fund?
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Overall?
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FY 2026?
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$14.71 billion?
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$18.71 billion?
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$33.41 billion?
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?Michigan?s economy and revenues are strong and stable, laying the groundwork for the upcoming budget process,? said State Treasurer Rachael Eubanks. ?Confidence in our economy is expected to increase with lower inflation, lower interest rates, lower gas prices, and low unemployment. People are going to feel better and better about the economy as we move into 2024.??
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 unexpected changes in the national economy and international economic issues.?
?Under Gov. Whitmer?s leadership we?ve passed a balanced budget on time, every year; we?ve built up a record balance in the rainy-day fund; and paid off nearly $20 billion in debt,? said State Budget Director Jen Flood. ?Following today?s conference, we?ll finalize the Governor?s budget proposal which will continue to prioritize lowering costs, investing in kids, and growing jobs and economy.??
FY 2024 spans from Oct. 1, 2023, to Sept. 30, 2024, while FY 2025 spans from Oct. 1, 2024, to Sept. 30, 2025. FY 2026 begins on Oct. 1, 2025.?
The January Consensus Revenue Estimating Conference?s detailed forecast ? as well as presentations from today?s session ? can be found at www.michigan.gov/crec.?
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