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Administration, Fiscal Agencies Reach Consensus on Revenue Estimates; Economy Continues to Thrive, Revenues Up from May Forecast

State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary today reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2023 and 2024 and the initial forecast 2025 fiscal year.

Overall Revenue Forecast (General Fund and School Aid Fund Combined)

Fiscal Year

May 2022

January 2023

Change from May to January

FY 2023

$31.17 billion

$32.41 billion

$1.24 billion

FY 2024

$31.67 billion

$32.94 billion

$1.26 billion

General Fund

Fiscal Year

May 2022

January 2023

Change from May to January

FY 2023

$13.97 billion

$14.78 billion

$0.80 billion

FY 2024

$14.23 billion

$15.09 billion

$0.86 billion

School Aid Fund

Fiscal Year

May 2022

January 2023

Change from May to January

FY 2023

$17.20 billion

$17.64 billion

$0.44 billion

FY 2024

$17.44 billion

$17.85 billion

$0.40 billion

In addition to FY 2023 and FY 2024 forecasts, initial revenue estimates for FY 2025 were released.

Fiscal Year

General Fund

School Aid Fund

Overall

FY 2025

$15.55 billion

$18.26 billion

$33.80 billion


“Our economy continues to thrive and revenues for our current fiscal year have once again exceeded expectations,” State Treasurer Rachael Eubanks said. “Although the last couple of years have provided an extraordinary revenue picture, we must be thoughtful and deliberative about our policy choices due the uncertainty on the horizon.”

These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to today, including further pandemic issues, unexpected changes in the national economy, and international economic issues.

“Today’s conference illustrates why the consensus is a pivotal part of the State’s budget process,” said State Budget Director Christopher Harkins. “I remain optimistic about the strength of Michigan’s economy and these consensus numbers suggest continued growth in revenues over the next several years. The nature of this forecast also reminds us that revenues may fluctuate, and it remains important that we continue to ensure that any available one-time revenues be used for one-time investments to grow and build Michigan.”

FY 2023 spans from Oct. 1, 2022, to Sept. 30, 2023, while FY 2024 spans from Oct. 1, 2023, to Sept. 30, 2024. FY 2025 begins on Oct. 1, 2024.

The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at Senate Fiscal Agency website.

Ron Leix, Treasury, 517-335-2167