Administration, Fiscal Agencies Reach Revenue Consensus for Remainder of Fiscal Year 2014, FYs '15 and '16Contact: Terry Stanton, (517) 335-2167 Subscribe to Treasury Press Releases
January 10, 2014
State Treasurer Kevin Clinton, 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) 2014, and for the 2015 and 2016 Fiscal Years.
Net FY 2014 General Fund-General Purpose (GF-GP) revenue is projected at $9.573 billion, up $126 million from the estimate agreed to at the May 2013 revenue conference. Net FY ’14 School Aid Fund (SAF) revenue is now estimated at $11.560 billion, up $90 million from May. Combined, GF and SAF estimates are up $216 million for FY ’14.
Net GF-GP revenue for the 2015 Fiscal Year is now forecasted at $10.047 billion, up $206 million from the May estimate, while the FY '15 SAF revenue estimate has been revised up $119 million to an estimated $11.932 billion.
In FY 2016, GF-GP revenue is estimated at $10.536 billion and SAF revenue is estimated at $12.338 billion. These are the initial estimates for FY 2016.
"Economic activity in Michigan continued to improve through 2013, marking a fourth consecutive year of growth,” said State Treasurer Kevin Clinton. “Based on what we heard from economic experts today, we should see continued improvement in the critical automotive and housing industries, which will help push economic growth in our state.”
There are external risks to economic and revenue forecasts agreed to today. According to Budget Director Nixon, the State should be thoughtful about possible uses of additional revenues forecasted for the future.
“As has been the case for the last three years, fiscal responsibility must be priority one,” Nixon said. “We have to consider what options provide the best long-term solution for our citizens and the State of Michigan as a whole.”
Consensus figures reached today will be used to develop the Governor’s executive budget recommendation for Fiscal Year 2015, which begins on October 1.