State Treasurer, Fiscal Agencies Update Revenue Picture for the Remainder of FY 2010 and FY '11Contact: Terry Stanton, (517) 335-2167
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 Fiscal Year (FY) 2010 and for FY 2011, which begins October 1, 2010.
As a result of today's Revenue Estimating Conference, net FY 2010 General Fund-General Purpose (GF-GP) revenue is now projected at $6.655 billion, $244 million below estimates agreed to during the January revenue conference. Net FY '10 School Aid Fund (SAF) revenue is now estimated at $10.750 billion, up $292 million from January's estimates. Combined, GF and SAF estimates are up $48 million for FY10.
Net GF-GP revenue for the 2011 Fiscal Year was revised up $128 million to $7.097 billion and net FY '11 SAF revenue was increased $352 million to $10.833 billion.
"The State of Michigan is beginning to experience modest economic growth, with sales and income tax revenues coming in ahead of expectations, which is good news for the School Aid Fund," said State Treasurer Robert J. Kleine. "However, that news is tempered by weakness in General Fund revenues, requiring a downward adjustment for the current fiscal year." Larger-than-expected Michigan Business Tax refunds are responsible for the drop in GF revenues in FY ‘10. Treasurer Kleine is optimistic Michigan's employment picture will show growth through the latter part of this year and into 2011, as the national and state economies continue to improve.
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