State revenue projections continue to climb
The state is bringing in more money than expected. That’s according to a report by the non-partisan Senate Fiscal Agency.
The agency says Michigan ended the fiscal year that ended September 30th with a $1.3 billion surplus. An improving economy and lower income tax refunds are largely credited for the surplus. But much of the windfall has already been dedicated to programs in the current fiscal year.
David Zin is an economist with the Senate Fiscal Agency. He says the auto industry still has a major impact on the state’s economy.
“People cut back so much on vehicle purchases in the 2008-9 recession, that while sales are low by historical standards, they’re up quite significantly from just a year or two ago,” Zin said.
Zin says the state collected more tax revenue in 20-11 than projected last year. He says the economy is not expected to grow quickly over the next couple years.