State revenues come in much higher than expected just days before Governor set to outline economic vision during ‘Road Ahead Address’ at Detroit Auto Show
LANSING, Mich. – Governor Gretchen Whitmer issued the following statement after today’s Consensus Revenue Estimating Conference (CREC) showed state revenues coming in significantly higher than expected, a clear sign of Michigan’s strong economic growth and momentum heading into 2025. The encouraging data comes in advance of Governor Whitmer's ‘Road Ahead Address’ at the Detroit Auto Show next week, which will outline her commonsense, bipartisan approach in 2025 to grow Michigan’s economy, lower costs, and put money back in people’s pockets, building on the successes of the last six years.
“Michigan’s economy is headed in the right direction.
“Thanks to our hardworking people, innovative businesses, and strategic financial management, state revenues came in strong, much higher than we expected. Our economy is also projected to continue growing over the next few years.
“In 2025, we will build on the work we’ve done since I took office to cut taxes by $1 billion for seniors and working families, reinvest in our workers and businesses, and lower costs for families on everything from school meals to housing to child care.
“In 2025, let’s keep rolling up our sleeves and getting things done.”
Michigan’s Strong Economic Momentum
- Unemployment has been below 5% for 37 straight months.
- Rainy day fund is at an all-time high of $2 billion.
- Labor force participation is at a 25-year high.
- Construction jobs are at a 22-year high.
- Median household incomes have risen by nearly $13,000 since 2019.
- GDP has grown 35% since 2019.
- A top 10 state for doing business according to CNBC and Area Development Magazine.
Overall Revenue Forecast (General Fund and School Aid Fund Combined)
Fiscal Year May 2024 January 2025 Change from May to January
FY 2025 $32.40 billion $33.18 billion $770.4 million
FY 2026 $33.46 billion $34.37 billion $910.2 million
General Fund
Fiscal Year May 2024 January 2025 Change from May to January
FY 2025 $14.26 billion $14.72 billion $457.7 million
FY 2026 $14.89 billion $15.48 billion $591.2 million
School Aid Fund
Fiscal Year May 2024 January 2025 Change from May to January
FY 2025 $18.15 billion $18.46 billion $312.7 million
FY 2026 $18.57 billion $18.89 billion $319.0 million
In addition to FY 2025 and FY 2026 forecasts, initial revenue estimates for FY 2027 were released.
Fiscal Year General Fund School Aid Fund Overall
FY 2027 $15.74 billion $19.35 billion $35.10 billion
###
