Updates About Revenue Reports

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.

On April 5, Governor Gretchen Whitmer signed legislation repealing Michigan’s 1931 abortion ban. The 1931 Michigan penal code prohibited the sharing or publishing information regarding contraception and abortion and prohibited administration of miscarriage procuring drugs or a surgical abortion procedure. Senate Bill 2 and House Bills 4006 and 4032 revokes the felonies of the 1931 penal code. These bills ensure that individuals who administer or receive an abortion are not criminalized.

On Friday March 24, Governor Whitmer also signed bills repealing the Michigan right to work law and restoring the prevailing wage for public construction projects. These bills include Senate Bill 34 and House Bills 4004 and 4007.

The Senate and House Fiscal Agencies reported state collections for February 2023. While the agencies found lower collections in February 2023 compared to 2022, the General Fund/General Purpose (GF/GP) revenues are above projections established at the January 2023 Consensus Revenue Estimating Conference (CREC).

According to the House Fiscal Agency, GF/GP collections for February 2023 totaled approximately $1.6 billion, which is $117 million less than February 2022. However, this total is $24.7 million above projections from January’s CREC. The School Aid Fund sits $23.3 million above January projections.

The Senate report showed GF collections were $99 million below SFA consensus revenue estimates while School Aid Fund collections were $6.2 million above consensus estimates.