Michigan Shows Revenue Surplus As Economy Improves
Lansing (WWJ)- On the same day the it was announced the state of Michigan has millions in additional revenue, a University of Michigan economist said the state’s rebounding economy will add about 60,000 jobs annually for the next three years.
State Treasurer Andy Dillon, Senate Fiscal Agency Director Ellen Jeffries, and House Fiscal Agency Director Mitchell Bean reached a consensus on economic and revenue figures for the remainder of this year and the next two years. General fund revenue for the 2012 fiscal year is now forecasted at $7.651 billion, up $356.9 million from the January estimate.
“While we have seen an up-tick in several revenue areas, the income and sales taxes have shown the strongest increases, as a result of employment gains,” said State Treasurer Andy Dillon in a statement. “There are some positive economic signs heading into the summer months, but we must continue our efforts to grow jobs and investment in Michigan, to keep the state economy moving forward.”
Dillon said there are still risks and a prolonged spike in energy costs could have a dampening effect on state and national economic growth.
Meantime, George Fulton said the state unemployment rate will hover between 9 percent and 10 percent through 2013 as job growth stays steady but not spectacular.
Fulton says the resurging domestic auto industry is helping the state get back on its feet as the Detroit Three see their first increase in market share since 1995. All sectors except government are expected to add jobs.
Fulton says Michigan is in the early stages of a sustained recovery and that 2011-13 will be the best three years for the state economy since 2000, although some residents will continue to suffer.
“We anticipated there would be a rebound in the economy, there has been, but so far it’s been a little stronger than we anticipated,” Fulton said.
The Associated Press contributed to this story.