Updates About Revenue Reports

The House Fiscal Agency’s (HFA) August revenue report indicates that both Michigan’s General Fund and School Aid Fund revenues are exceeding earlier projections from the May Consensus Revenue Estimating Conference.

General Fund revenues reached an estimated $1.15 billion in August, $12.1 million higher than previous forecasts, with year-to-date revenues increasing by $319 million. Similarly, the School Aid Fund brought in $1.4 billion, surpassing projections by $59 million, and showing a $128.4 million year-to-date increase compared to the previous fiscal year.

The recent November Revenue Report released by the Senate Fiscal Agency (SFA), revealed that Michigan’s General Fund and School Aid Fund tax collections fell short of the projections outlined in the May 2023 Consensus Revenue Estimating Conference (CREC). The General Fund taxes were reportedly $25.9 million below the estimated figures, while the School Aid Fund collections lagged by $41.6 million compared to the forecasts.

This shortfall was attributed to lower-than-expected sales tax collections and individual income tax withholding. Despite this, the report noted higher revenues in lottery revenue, use tax collections, and net Michigan Business Tax collections. Overall, the data shows a deficit in revenues for November compared to previously forecasted levels.

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.