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Michigan's budget outlook is not as bad as expected

Posted at 9:38 PM, Aug 24, 2020

LANSING, Mich. (AP) — 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.