Updates About Revenue Reports

The state’s next Consensus Revenue Estimating Conference (CREC) will take place on Friday, May 16, 2025, at 9 a.m. in the Capitol Building’s House Appropriations Committee Room.

At the conference, state fiscal agents and economists will present updated forecasts for the federal and Michigan economies, along with revised revenue projections for the remainder of Fiscal Year 2025 and the upcoming ’26 and ‘27 fiscal years. The official revenue estimates, which guide the state’s budget process, will be agreed upon by the State Treasurer or State Budget Director, the Director of the Senate Fiscal Agency, and the Director of the House Fiscal Agency.

The CREC will be available to watch live here on the day of the event.

The Senate Fiscal Agency’s February 2025 Revenue Report shows that the state’s tax revenues totaled $1.3 billion for the month, reflecting a 5.8% increase from February last year. However, fiscal year-to-date General Fund collections fell short of expectations by $127.3 million, while School Aid Fund collections exceeded forecasts by $24.1 million. Despite lower-than-anticipated use tax revenues and increased individual income tax refunds, the elevated collections from income tax withholding, the Insurance Tax, and Corporate Income Tax helped offset the gap.

Sales tax receipts rose 1.6% year-over-year to $774.3 million, surpassing projections by $24.4 million, while use tax collections fell 2.7% below February 2024 levels. Business tax revenues showed improvement, with net Michigan Business Tax, Corporate Income Tax, and the repealed Single Business Tax contributing $50.7 million—an increase from the previous year’s negative returns. Real estate transfer tax collections also rose significantly, increasing 24.1% from February 2024.

Michigan’s January Consensus Revenue Estimating Conference (CREC) revealed an upward trend in state revenues for the current fiscal year, with a $588 million increase attributed to higher taxes. Projections suggest a $1.2 billion budget increase for FY 2026, divided between the School Aid and General Omnibus budgets. While job growth continues post-pandemic, Michigan’s unemployment rate has also risen, driven by high federal interest rates impacting manufacturing. These findings set the stage for FY 26 budget discussions, beginning with the Governor’s executive budget recommendation in February.

Details on previous revenue reports are available Here.