Michigan’s economy seems to be in a perpetual state of flux. Sometimes it’s great, sometimes it’s awful. It’s like Forrest Gump’s box of chocolates, but with massive dollar figures attached to each one. 🍫
Anyway, the state recently put out a report on the budget situation in anticipation of lawmakers getting to work on next year’s budget. Things actually look pretty good!
Here are Five Fast Facts on Michigan’s budget situation:
- 👍 Good News - The State Treasurer, Rachael Eubanks, recently made a statement that everything was “hunky dory” in Michigan (economically speaking), including tax revenues, income taxes, interest earnings, and even wages. We’ll take “hunky dory” as much as we can get!
- 📈 Going Up - Compared to the January budget estimate, the most recent report showed an increase in overall tax revenue of almost $200 million. This is especially surprising since pandemic funds and programs have pretty much dried up. Just don’t think about where tax revenue comes from… 🙈 🙉 🙊
- 💰 Income Growth - The state’s per-capita income grew by almost 5% last year, to almost $60k. That was great to see because in 2022 incomes were gashed by inflation and high taxes. It probably didn’t hurt to have pandemic money being thrown around like buckets of sand, either.
- 📉 Going Down - Not everything is rosy. One downer was the fact that the School Aid Fund (SAF) was forecasted to be around $160 million lower due to lower than expected sales taxes.
- 🤔 What To Do - With a new budget surplus, the bickering over how to use it has already begun. Some say put it back to education, some say it should be used to reduce the tax burden, and some want to put it away to cover for the sales revenue being lower due to inflation. Roulette wheel, anyone?
🔥Bottom line: It’ll be interesting to see where the extra money goes. If you have any suggestions, we’re sure your elected representatives would love to hear about it!
What do you think should be done with the surplus?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
