The Senate Fiscal Agency (SFA) released a new report, highlighting that the state’s General Fund and School Aid Fund tax collections sat below projected levels from the May 2023 Consensus Revenue Estimating Conference (CREC).
The SFA reported that the General Fund taxes were $115.9 million below projections estimated at the May CREC for the month of August. The School Aid Fund collections were $14.5 million below May forecasts.
The reduction in funds was due to individual income tax withholding and sales tax collections, coupled with refunds for individual income taxes being higher than expected. All of these items, alongside higher than expected revenues in lottery revenue, use tax collections, and Michigan Business Tax collections, left the state with lower-than-expected revenues for August.