NewsLocal NewsMichigan

Actions

Michigan's budget outlook is not as bad as expected

WXMI_Default-Image_1280x720.png
Posted at 9:38 PM, Aug 24, 2020
and last updated 2020-08-24 21:38:59-04

Michigan’s budget outlook is not as bad as was thought — thanks to federal pandemic relief aid, higher consumer spending and tax payments than expected, and a quicker recovery by the auto industry.

In May, Gov. Gretchen Whitmer’s administration and legislative economists projected a combined $6.3 billion shortfall in two main funds over two year.

They revised that hole downward, to $3.4 billion, in a meeting Monday.

That means the situation isn't as dire as the Democratic governor and Republican-led Legislature work to pass a budget.

The shortfall for the coming fiscal year is less than $1 billion.