Michigan Revenue Forecast Shows Modest Growth Despite Economic Uncertainty
Michigan officials project $307.3 million more in state revenue than earlier estimates, though federal uncertainty clouds the economic outlook for coming years.
LANSING, MICHIGAN — Michigan financial officials released revenue projections Friday showing modest growth in state coffers over the next three fiscal years, though federal policy uncertainty continues to cloud the economic outlook.
The Consensus Revenue Estimating Committee, comprised of members from the House Fiscal Agency, Senate Fiscal Agency and Michigan Department of Treasury, met at the state Capitol to formalize revenue estimates through fiscal year 2028. The forecast marked the second such conference of the year.
The committee projected combined general fund and school aid fund revenues to be $307.3 million higher than January estimates for Fiscal Year 2026, with increases of $173.8 million predicted for both fiscal years 2027 and 2028.
Revenue Breakdown by Fund
For Fiscal Year 2026, officials forecast a $227.9 million increase in the general fund and a $79.4 million boost to the school aid fund compared to earlier projections. The 2027 and 2028 outlook shows general fund increases of $94.2 million annually, while school aid fund revenues are expected to rise $79.6 million each year.
State Treasurer Rachael Eubanks emphasized the need for cautious planning despite the positive revisions. “As we review the general fund and display fund today, our forecasts remain stable, but we must continue planning cautiously to ensure that Michigan stays on solid footing no matter what uncertainty lies ahead,” Eubanks told reporters following the committee’s conclusion.
Federal Policy Concerns Persist
The revenue conference echoed concerns raised during January’s estimating session about federal policy uncertainty affecting Michigan’s economic projections. Officials highlighted ongoing questions about federal decisions that could impact state revenues in coming years.
The committee included Senate Fiscal Agency Director Kathryn Summers, House Fiscal Agency Director Mary Ann Cleary, State Treasurer Rachael Eubanks and State Budget Director Jennifer Flood, who participated in Friday’s revenue discussions at the Capitol.
Michigan’s revenue forecasting process provides essential data for state budget planning, helping lawmakers allocate funds for education, infrastructure and other state priorities. The biannual conferences allow officials to adjust projections based on current economic conditions and policy changes.
The upward revisions in Friday’s forecast offer some relief for state budget planners, though officials maintain their cautious approach given economic headwinds and policy uncertainties at the federal level that could affect Michigan’s revenue streams.
