Updates About Revenue Reports

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.

The Senate Fiscal Agency (SFA) released a new report, highlighting that the state’s General Fund tax collections were above projections while the School Aid Fund tax collections sat below projected levels in December 2022.

The SFA reported that the General Fund taxes were almost $95 million above projections estimated at the May 2022 Consensus Revenue Estimating Conference (CREC) for the month of December. School Aid Fund taxes were $19.3 million below May forecasts.

However, for year-to-date collections, the General Fund was $39.2 million lower than expected and the School Aid Fund was $50.4 million higher than the May projections.