Trade war could force changes in state budget
An international trade war could reduce how much money Michigan has to spend on roads, schools, and health care.
That’s the word from economists who testified today before a state budget panel.
The panel’s job is to determine how much revenue is available as the governor and the Legislature put together the state budget. The picture is stable at the moment as the economy hums and employment is high.
But the panel was warned a trade war between the US and China could disrupt the economy.
Rachael Eubanks is Governor Gretchen Whitmer’s state treasurer.
“Certainly if we see any of that, we will be prepared to get back together as necessary to adjust.”
Governor Whitmer is looking for two and a half billion dollars to fix and upgrade roads. Anything that shakes the economy and reduces revenue would make that job more difficult.