Updates About Economy

A recent report by the Senate Fiscal Agency (SFA) showed that Michigan’s state revenue from major taxes and net lottery earnings reached $2.9 billion in November, marking a 10.5% increase compared to one year ago. Partially credited for the increase was the $147 million above anticipated projections for collections, including $31.8 million above forecast for the General Fund and $103 million exceeding expectations for the School Aid Fund. Additional funds were allocated to entities such as the Local Community Stabilization Authority and gaming-related programs.

Income tax revenue led the growth, totaling $1.1 billion for November, an 11.4% increase from last year and $6.2 million higher than projected. Use tax collections also saw a significant 7.4% increase, reaching $234.7 million. However, not all areas experienced growth; sales tax receipts dipped 1.5% year-over-year to $843.5 million, with motor vehicle sales tax collections hitting their lowest level since June 2024.

The Michigan Senate broke records during lame duck with a 29-hour session that ran from 10 a.m. Thursday to 3:01 p.m. Friday, passing over 90 bills before adjourning. Senate Democrats prioritized salvaging as much legislation as possible after House Democrats were unable to maintain a quorum due to a missing Democratic member and a Republican walkout. While most bills were passed in their original form and are now headed to the Governor’s desk, some were amended and sent back to the House, where they are unlikely to advance unless the House reconvenes earlier than December 31.

¶Key Bills Passed by the Senate:

• Requirement for Michigan schools to supply information to parents on firearm storage rules each year
• Allowing pharmacists to prescribe contraceptives and to require coverage of pharmacist-prescribed birth control methods
• Maternal Health bills designed to address the state’s high maternal mortality rates
• Lifting medical benefit plan caps to raise the amount public employers can contribute towards staff healthcare plans
• Prohibiting law enforcement from selling firearms obtained in gun buyback programs and requiring firearms obtained through buyback programs to be destroyed
• School Safety and Mental Health bill package intended to standardize school safety requirements

Governor Whitmer touted Michigan’s strong job growth with the addition of 27,000 jobs in Fiscal Year 2024, signaling ongoing economic expansion. The construction sector reached a two-decade high, employing over 200,000 people, while Michigan’s labor participation rate rose above 62%—its best level since 2009. Key data from the Department of Technology, Management and Budget (DTMB) shows Michigan’s unemployment rate at 4.5%, with average manufacturing wages up 5% year-over-year, outpacing inflation.

The Governor has pursued several initiatives to fuel this growth, including $21.3 billion in clean energy and battery projects, a $500 million Make it in Michigan Fund, and a new Innovation Fund to foster local businesses. These efforts have contributed to Michigan’s leadership in the auto and clean energy sectors, record construction employment, and rapid small business growth, making the state a top performer in job creation and business climate.