72 (Rev.

01-11)

RICK SNYDER
GOVERNOR

STATE OF MICHIGAN DEPARTMENT OF TREASURY LANSING

ANDY DILLON
STATE TREASURER

May 15, 2013 FOR IMMEDIATE RELEASE www.michigan.gov/treasury Contact: Terry Stanton (517) 335-2167 Kurt Weiss (517) 335-0050

Administration, Fiscal Agencies Reach Revenue Consensus for Remainder of Fiscal Year 2013 and FYs 14 and 15
State Treasurer Andy Dillon, State Budget Director John Nixon, Senate Fiscal Agency Director Ellen Jeffries, and House Fiscal Agency Director Mary Ann Cleary today reached a consensus on economic and revenue figures for the remainder of Fiscal Year (FY) 2013, and for the 2014 and 2015 Fiscal Years. Following todays Revenue Estimating Conference, net FY 2013 General Fund-General Purpose (GF-GP) revenue is projected at $9.189 billion, up $397 million from the estimate agreed to at the January revenue conference. Net FY 13 School Aid Fund (SAF) revenue is now estimated at $11.213 billion, up $86 million from January. Combined, GF and SAF estimates are up $482.6 million for FY 13. Net GF-GP revenue for the 2014 Fiscal Year is now forecasted at $9.446 billion, up $182 million from the January estimate, while the FY '14 SAF revenue estimate has been revised up $38 million to an estimated $11.47 billion. In FY 2015, GF-GP revenue is estimated at $9.840 billion and SAF revenue is estimated at $11.813 billion. These revised estimates are up $200 million and $44 million, respectively, from the January 2013 estimates. "Michigans economy continues to improve and is currently experiencing its third straight year of renewed employment growth, said State Treasurer Andy Dillon. As economic experts noted today, we expect to see continued growth in vehicle sales and housing starts, which are expected to help drive economic activity and revenue growth in Michigan. Gradual improvement in the national economy will be key in sustaining recent economic growth in Michigan. Todays forecasts will help the Administration and Legislature put the finishing touches on the Fiscal Year 2014 budget, said State Budget Director John Nixon. We continue to experience a strong financial position, thanks to the groundwork that has been put in place through responsible budgeting and the reinvention of Michigan.
430 WEST ALLEGAN STREET LANSING, MICHIGAN 48922 www.michigan.gov/treasury (517) 373-3200

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There are a number of risks to the economic and revenue estimates agreed to today, including Federal Government fiscal policy uncertainty and the European sovereign debt crises. In addition, a jump in oil and gasoline prices would reduce economic and revenue growth. A positive factor would be if housing activity turns out to be stronger than expected, which would be a plus for both economic growth and revenues.
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