Michigan state government is awash in tax dollars.
The state could end the fiscal year with a surplus of $5.1 billion in the general fund and $4.1 billion in the school aid fund, Gov. Gretchen Whitmer’s budget director said Friday. The budget year ends on Sept. 30.
Chris Harkins said nearly $6 billion of that total is for one-time use.
‘We’re still in a very strong position on the balance sheet,’ he said.
The House Fiscal Agency predicts that revenues have been running high enough to automatically trigger a drop in the income tax rate to 4.05% from 4.25%, under a 2015 law.
‘We simply don’t know what’s going to happen because the books are not closed yet,’ state Treasurer Rachael Eubanks said.
Separately, Whitmer has proposed removing a tax on pensions and increasing a tax credit for people with low or moderate incomes.
Republicans, who no longer have a majority in the Legislature, would welcome a broad tax cut.
‘The hardworking people of our great state do not need more government bureaucracy. They need to keep more of what they earn; after all it is their money in the first place,’ said Sen. Jon Bumstead, R-North Muskegon.
Michigan’s unemployment rate should be down to around 3.9%, a pre-pandemic figure, by the end of 2025, said University of Michigan economic forecaster Gabe Ehrlich.
Michigan state government is awash in tax dollars.
The state could end the fiscal year with a surplus of $5.1 billion in the general fund and $4.1 billion in the school aid fund, Gov. Gretchen Whitmer’s budget director said Friday. The budget year ends on Sept. 30.
Chris Harkins said nearly $6 billion of that total is for one-time use.
‘We’re still in a very strong position on the balance sheet,’ he said.
The House Fiscal Agency predicts that revenues have been running high enough to automatically trigger a drop in the income tax rate to 4.05% from 4.25%, under a 2015 law.
‘We simply don’t know what’s going to happen because the books are not closed yet,’ state Treasurer Rachael Eubanks said.
Separately, Whitmer has proposed removing a tax on pensions and increasing a tax credit for people with low or moderate incomes.
Republicans, who no longer have a majority in the Legislature, would welcome a broad tax cut.
‘The hardworking people of our great state do not need more government bureaucracy. They need to keep more of what they earn; after all it is their money in the first place,’ said Sen. Jon Bumstead, R-North Muskegon.
Michigan’s unemployment rate should be down to around 3.9%, a pre-pandemic figure, by the end of 2025, said University of Michigan economic forecaster Gabe Ehrlich.
