FOR IMMEDIATE RELEASE
January 10, 2025

Contact: Ron Leix, Treasury, 517-335-2167

Administration, Fiscal Agencies Reach Consensus on Revenue Estimates

Revenues Up from May Forecast, Economy Stable

LANSING, Mich. – 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) 2025, the upcoming 2026 fiscal year and the initial forecast for the 2027 fiscal year.

“The state of Michigan heard good news today from our leading economists,” State Treasurer Rachael Eubanks said. “Our revenue estimates have exceeded expectations, with forecasts projecting a half a billion dollar increase this fiscal year and modest increases in future years. In addition, Michigan’s economy is showing positive signs. Inflation is cooling, the labor market is stable and incomes are growing. We are in a great position as the budget process begins.”

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

General Fund

School Aid Fund

In addition to FY 2025 and FY 2026 forecasts, initial revenue estimates for FY 2027 were released.

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 unexpected changes in the national economy and international economic issues.

“Michigan’s economy is strong and we’re well positioned going into 2025,” said State Budget Director Jen Flood. “Our budget will focus on growing our economy, lowering costs for Michiganders, and helping kids learn. We look forward to working with leaders in both parties to pass a budget by the July 1 deadline.”

FY 2025 spans from Oct. 1, 2024, to Sept. 30, 2025, while FY 2026 spans from Oct. 1, 2025, to Sept. 30, 2026. FY 2027 begins on Oct. 1, 2026.

The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at www.michigan.gov/crec.

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