State Budget Process Continues with Release of Economic Forecast at Revenue Estimating Conference

At Michigan's Revenue Estimating Conference held May 17, state economists forecasted lower General Fund revenues ($392.7 million for three years) but higher School Aid revenues ($539.7 million for the same time period). This has created a quandary for appropriators who were budgeting for a possible tax cut or debt relief, and is leading some to speculate that funds will be diverted from the School Aid Fund.

The House and Senate already approved their respective Fiscal Year 2018 budgets and, with the figures released at the May Revenue Estimating Conference, the next step will be the appointment of budget conferees to reconcile differences between the two chambers’ measures. Appropriators are still targeting a June deadline to complete the state budget process prior to adjourning for the summer.