May 16, 2011
State Treasurer Andy Dillon, Senate Fiscal Agency Director Ellen Jeffries,
and House Fiscal Agency Director Mitchell E. Bean today reached a consensus on
economic and revenue figures for the remainder of Fiscal Year (FY) 2011, for FY
2012, which begins October 1, 2011, and for FY 2013.
Following today's Revenue Estimating Conference, net FY 2011 General
Fund-General Purpose (GF-GP) revenue is projected at $7.524 billion, up $296
million from estimates agreed to at the January revenue conference. Net FY '11
School Aid Fund (SAF) revenue is now estimated at $11.112 billion, up $132
million from January. Combined, GF and SAF estimates are up $429 million for FY
'11.
Net GF-GP revenue for the 2012 Fiscal Year is now forecasted at $7.651
billion, up $356.9 million from the January estimate, while the FY '12 SAF
revenue estimate has been revised up $142 million to an estimated $11.335
billion.
In FY 2013, GF-GP revenue is estimated at $7.517 billion and SAF revenue is
estimated at $11.626 billion.
"While we have seen an up-tick in several revenue areas, the income and sales
taxes have shown the strongest increases, as a result of employment gains," said
State Treasurer Andy Dillon. "There are some positive economic signs heading
into the summer months, but we must continue our efforts to grow jobs and
investment in Michigan, to keep the state economy moving forward."
Treasurer Dillon noted several risks to the revenue estimates agreed to
today, which include high oil and gas prices. A prolonged spike in energy costs
could have a dampening effect on state and national economic growth.
"The revenue estimates agreed to today show positive signs toward economic
recovery in Michigan," said State Budget Director John Nixon. "I am encouraged
by this news and think it demonstrates that Michigan is poised and ready for a
bright and prosperous future. I would caution, however, that the bright future
we all desire can only happen if we remain committed to a balanced budget. We
must proceed prudently and ensure we achieve long-term structural balance."
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