Sen. Kahn: Michigan is not out of the woods yet
Friday, January 13, 2012
LANSING — While Michigan’s economy is slowly recovering, the state still faces budget challenges for the coming fiscal year, said Senate Appropriations Chair Roger Kahn.
State fiscal analysts met Friday for a revenue estimating conference at the Capitol.
“Despite what some would have you believe, there really isn’t any extra money,” said Kahn, R-Saginaw Township. “Financially speaking, Michigan faces extraordinary uncertainties as to what we owe and what our people need.
“While it’s tempting to only focus on the good news that came out of our meeting today, we’re not in the clear yet. The Legislature and our people need to understand that between existing obligations, reductions in School Aid revenue and reductions in federal support due to the failure of the Super Committee, we have very limited resources for new programs.”
Michigan’s net FY 2012 General Fund-General Purpose revenue is projected to be $9.031 billion, an increase of $278 million from the comparable estimate agreed to at the May 2011 revenue conference. According to Kahn, Michigan income tax revenues will be reduced by $170 million in 2013.
The January Revenue Estimating Conference is a meeting of fiscal leaders from the Senate, House and executive branch, as well as economists from across the state. The figures are used to draft budget proposals for the next fiscal year, which begins Oct. 1.
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