State Treasurer Robert J. Kleine,
Senate Fiscal Agency Director Gary S. Olson, and House Fiscal Agency Director
Mitchell E. Bean today reached a consensus on economic and revenue figures for
the remainder of the 2009 Fiscal Year and for FY 2010, which begins October 1st.
Net Fiscal Year 2009 GF-GP revenue is now projected to be $7.435 billion, $871
million below January estimates. Net FY 2009 SAF revenue is also down from the
January estimates by $425 million, now totaling $10.944 billion.
"Actual
revenue collections are at their lowest levels since 1991," said State Treasurer
Robert J. Kleine. "When adjusted for inflation, this is the most significant,
annual revenue decline in a half century and double the revenue loss Michigan
experienced in the severe recession of 1981."
In
anticipation of the revenue shortfall, Governor Jennifer M. Granholm issued
Executive Order 2009-22 last week, which reduced current year spending by nearly
$350 million, including $304 million in General Fund savings.
For FY 2010, which begins
October 1, 2009, net GF-GP revenue is now estimated at $6.950 billion, down $985
million from January's consensus, with net FY '10 SAF revenue forecasted to be
down nearly $733 million from prior estimates.
"Given the national recession,
the significant loss of market share among the domestic auto industry, and the
continued restructuring in the automotive manufacturing sector, Michigan's
economic climate is expected to remain quite negative for several months,"
Kleine said.
The governor's FY 2010 Executive
Budget recommendation was based on the January revenue consensus. Negotiations
for the FY 2010 budget will be centered on the revenue and economic estimates
agreed to today.
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