MLA Advocacy News

State Revenue Estimates are Way Down, but Budgets Won’t Need Fixing

Below is an edited and condensed version of a Citizens Research Council of Michigan (CRCM) blog post – used with permission and as reported by the CRCM:

In a Nutshell

• Updated state revenue forecasts suggest GF/GP revenue will decline by more than $4.3 billion across FY2023, FY2024, and FY2025.
• Those revenue downgrades are almost entirely attributable to the major tax reductions enacted in March and April.
• The revenue adjustments will be “much ado about nothing” for state lawmakers as they finalize the state’s budget in the coming months. The budgets that have passed the House and Senate are already largely in line with these new estimates.

Both the House and the Senate have already passed their own spending plans for the Fiscal Year (FY)2024 state budget, paving the way for conference committees to iron out the differences between the two chambers’ proposals over the coming months.

FY25 Budget Recommendations for Libraries

In the Governor’s Version – no additional support has been allocated to libraries – the budget remains flat based on FY24

In the House Version - $500,000 has been allocated to State Aid for Libraries.

In the Senate Version - $25M has been allocated to School Libraries in the School Aid Fund.

In the Senate version of the budget, there is $15.5 million allocated for “Community Revitalization and Municipal Support.” The list of permitted recipients of these grants includes “municipal library improvements.”