Michigan has $9.2 billion surplus entering ‘mild’ recession

Michigan has $9.2 billion surplus entering ‘mild’ recession
Michigan Capitol. Credit: Getty Images

Combined tax revenues in Michigan’s two main funds were $1.5 billion higher than expected in the last fiscal year and will come in $1.2 billion higher than anticipated both this budget year and next, administration and legislative economists projected on Friday while also warning of a recession.

All told, the state will have an unprecedented $9.2 billion surplus at the end of this fiscal year, including $5.8 billion for one-time spending and $3.4 billion for ongoing use, according to the state budget director Chris Harkins. The balance should help Michigan better withstand recessionary risks, he said.

The state’s continued strong recovery from a short, pandemic-driven recession “has translated into strong revenues that have once again exceeded expectations,” state Treasurer Rachael Eubanks said. She cited uncertainty, however, due to predictions of a “mild” recession ahead.

Read the full story from Crain’s Detroit Business.