LANSING, Mich. — Michigan's short-term budget outlook became even rosier Friday, when economists revised projected tax revenues upward by a combined $5 billion over two years.
The new estimates will be used by Democratic Gov. Gretchen Whitmer and the Republican-led Legislature to finalize the next state spending plan. Both sides want to cut taxes but differ over how to do it.
Revenues in the school aid and general funds for the current fiscal year are $3 billion higher than was forecast in January. For the 2022-23 budget year, they are up $2 billion from the estimate four months ago.
"At a time when we're seeing very good news today, I think we just have to continue to maintain a fair sense of caution as we look at the medium- and longer-term as we're dealing with really unprecedented territory in this uncertain economy," state Treasurer Rachael Eubanks said.
Gov. Whitmer released a statement Friday addressing the increase, saying in part:
“Thanks to hardworking people, innovative small businesses, and effective fiscal management, Michigan has $3 billion in additional revenue. In the weeks and months ahead, I look forward to working across the aisle to utilize this additional revenue, pass a budget by June 30th as required by law, and sign a fourth balanced, bipartisan state budget as soon as possible. I proposed a budget in February, which would roll back the retirement tax and triple the Earned Income Tax Credit, make the highest per-student investment ever, continue rebuilding our infrastructure, spur economic development, back workforce development programs, and lower costs."
Gov. Whitmer went on to say that with rising costs, many Michiganders would benefit from the MI Tax Rebate Right Now plan, which she proposed Thursday. The plan would return $500 to Michigan families from the surplus.
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