Consensus Revenue Estimating Conference Findings for FY21 and FY22

January 28, 2021

State economists including State Treasurer Rachel Eubanks, State Budget Director Dave Massaron, Senate Fiscal Agency Director Christopher Harkins, and House Fiscal Agency Director Mary Ann Cleary, agreed to upgrade state revenue projections in response to data that shows the doom and gloom from the economic shutdowns enacted in response to the COVID-19 pandemic will not be nearly as bad as originally feared. These projections* were presented at the January 15, 2021 Consensus Revenue Estimating Conference (CREC).

When Michigan’s government finally closes the books on FY2020 (last year), it is projected to have a $2.5 billion surplus in the General Fund and a nearly $1.2 billion balance in the School Aid Fund. These numbers will be carried over into the current fiscal year. The combined $3.7 billion surplus is a complete turnaround to where state officials projected the budget's position to be last summer when Michigan was staring into a $2.2 billion hole for FY2020. The state economists stated that the federal government's help with unemployment payments, stimulus checks, and COVID-19 relief help for public health care, is a big driver for the change.