MI Economic Outlook
Michigan’s unemployment rate dropped by two-tenths of a percentage point in April to 8.3 percent. Rick Pluta reports:
That news came amid predictions that Michigan’s economic recovery will continue, but at a slower pace than it has. George Fulton is a University of Michigan economist. He says Michigan’s jobless rate remains high, but the state has been outpacing the nation in creating new jobs. “The largest job gains have been the higher wage sector and we see job growth continuing for the next few years, but not quite at the pace we saw last year,” Fulton says. Fulton says that’s largely because of an expected slowdown in car and truck sales, plus overall slow growth in the national economy. Still the mostly good economic news was enough to convince state budget officials to up their revenue projections based on expected income improvements and more consumer spending.
Balancing the State’s Checkbook
Michigan's budget will have about $300 million more this year than state economists predicted in January. “That money is the result of a combination of higher-than-expected tax payments and fewer people receiving Medicaid and other state services. The news came from today's revenue estimating conference in Lansing. State budget director John Nixon says he thinks much of the extra money may go into the state's rainy day fund. Or it may be set aside in case the state loses legal fights over collecting income taxes on public pensions or having state workers pay more of their pension costs. Officials also estimate the state will have about $100 million more to spend in the budget year that starts Oct. 1,” reporters in the Michigan Radio Newsroom explain.
MI More Optimistic
The survey says state residents haven't been this positive about the economy since 2005, with 54 percent of survey participants characterizing their financial situation as "good" or "excellent" and 61 percent expecting things to get even better in the year to come. MSU notes, “In the fall 2011 survey, conducted from mid-September through early November, only 46.2 percent of those answering the survey called their financial situation "excellent" or “good.”