Slow Economic Growth Predicted for Michigan

Michigan’s economy is expected to slow a bit over the next three years.

The Michigan Senate Fiscal Agency’s latest Economic Outlook and Budget Review is projecting growth of 1.8 percent this year, 1.7 percent next year, and 1.5 percent in 2022.

That’s down from a 2.9 percent increase last year. It’s also nearly identical to the growth expected in the national economy.

The agency estimates that state revenue will rise 1.5 percent for the 2019-2020 fiscal year. All of that is headed to the school aid fund, which is expected to receive a boost thanks to increased online sales tax collection.

General fund revenues could sag just a bit.

The SFA anticipates that the books for the 2018-2019 fiscal year will close with an $829.7 million balance in the general fund, and a $173.7 million balance in the school aid fund.

See the full report here.