LANSING, Mich. (WZMQ) – the Michigan Consensus on Revenue Estimates Conference finalized the first revenue forecast for 2024. The Michigan Department of Treasury found this year’s estimates are higher than originally expected in previous forecasts.
This January’s Revenue Estimate Conference put the States returns nearly half a billion dollars higher than anticipated. The Chief Economist with Michigan’s Treasury Department, Eric Bussis, said these new numbers are a good sign for the state’s economy.
“Last year at this time, most economists, including the state economists, expected that we would hit a recession sometime in the next year, and we haven’t seen that happen. Consumers have continued to be really resilient in spending and the economy is continuing to push along.” Bussis said. “The economic growth in Michigan continues to be really strong and we’re entering a period where we expect inflation to come down.”
At the Consensus Revenue Estimating Conference, fiscal analysts from the Senate, House, and Treasury all agree on the most recent estimates of how much money they expect the state to bring in over the next couple of fiscal years.
The January meeting is the first of two held each year to set the amount the governor uses for her upcoming budget submission in February. The panel meets again in May to update the numbers before the budget is finalized by the legislature and the Governor.
“It’s really the kickoff for the governor’s budget process and the state budget process,” Bussis explained. “This report, and the agreed to revenue estimates, really allow everybody to work from the same page. It gives the Legislature and the Governor a common place of reference in terms of how much money the state has, and they can then work together to see how best to spend those funds.”
Bussis explained that in May of 2023, the revenue forecast was set at $31.13 billion, but the updated figure estimates an extra $410 million of revenue for the remainder of the 2024 fiscal year. The numbers for the 2025 fiscal year also saw an increase of $150 million, setting revenue at $32.33 billion as the Governor begins work on the new budget.
“Since last year, we’ve seen the economy continue to rebound from the pandemic. growth is entering a more normal cycle and we’re seeing the economy in Michigan continue to grow at a strong rate.” Bussis said. “That means that the governor and legislature have a bit more to work with as they craft this year’s budget.”
These estimates are the first step in creating a budget for the 2025 fiscal year, the Governor will submit her first draft of the budget to the legislature next month, which they will have until July to finalize.
