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Michigan expecting higher tax revenue for next two years

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Michigan schools will be getting $6 billion in COVID-relief money.

LANSING, Mich. (WJRT) - The state government is expecting to collect more revenue than earlier anticipated this year and next year.

The Michigan Department of Treasury is anticipating $1.72 billion more in revenue this year and $1.4 billion next year after Friday's Consensus Revenue Estimating Conference.

A group of state economists and government officials meets twice a year to determine how much revenue to expect. Their guidance helps set Michigan's state budget and spending plans.

For 2022, the state expects over $776 million more for the general fund and over $947 million more for the School Aid Fund. Smaller increases are anticipated for both funds next year, as well.

New projections for the 2024 budget released Friday show a likely $730 million increase from the prior year.

"Revenue growth continues to be strong as the economy recovers,” State Treasurer Rachael Eubanks said. “We are also still seeing the positive impacts of the federal stimulus programs. We expect growth rates to return to more typical levels as the support of the stimulus fades.”

Revenue estimating conference members noted that COVID-19 outbreaks, changes in the overall U.S. economy and international problems all could cut into Michigan's anticipated revenue growth estimates.

State Budget Director Christopher Harkins said Michigan's financial balance sheet is strong this year largely because of one-time funding sources. He recommended investing the increased funding on measures to support long-term growth.

“Michiganders can be excited about the economic picture that was presented today and about the revenues we have available to us to build the budget, especially when you consider it was just under two years ago when the revenue estimates did not look good during those early days of the pandemic," Harkins said.

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