January 13, 2012
State Treasurer Andy Dillon, State Budget Director John Nixon, Senate Fiscal Agency Director Ellen Jeffries, and House Fiscal Agency Director Mary Ann Cleary today reached a consensus on economic and revenue figures for the remainder of Fiscal Year (FY) 2012, FY 2013, which begins October 1, 2012, and FY 2014.
As a result of today’s Revenue Estimating Conference, net FY 2012 General Fund-General Purpose (GF-GP) revenue is projected at $9.031 billion, up $278 million from the comparable estimate agreed to at the May 2011 revenue conference. Net FY ’12 School Aid Fund (SAF) revenue is now estimated at $10.764 billion, up $139 million from May. Combined, GF and SAF estimates are up $416 million for FY ’12.
Net GF-GP revenue for the 2013 Fiscal Year is now forecasted at $9.035 billion, up $127 million from the May estimate, while the FY '13 SAF revenue estimate has been revised up $90 million to an estimated $11.055 billion. For FY 2014, GF-GP revenue is expected to total $9.236 billion and SAF revenue is estimated at $11.360 billion. These represent the initial revenue estimates for FY 2014.
“In 2011, Michigan’s economy experienced job growth for the first time since 2000. This improvement in economic activity is expected to continue through 2014, which will help bolster tax collections,” said State Treasurer Andy Dillon. “The improving national economy combined with our continuing efforts to grow jobs and investment in Michigan, will help keep the state economy moving forward.”
Treasurer Dillon noted several risks to the revenue estimates agreed to today, which include the European debt crisis, national debt, and high oil and gas prices. A downturn in the European economy or rising energy costs could have a dampening effect on state and national economic growth.
“Michigan should feel good about these numbers and the direction in which the state is now headed,” said State Budget Director John Nixon. “With a budget that is now in balance for the future and the state living within its means, we can all feel good about the fact that talks about massive budget deficits have been replaced with talks about revenue growth. We will remain committed to a balanced and stable budget that strengthens the long-term financial health of the state.”