Last week, the state revenue estimating conference predicted Michigan could see a budget shortfall of over six-billion dollars over the next two fiscal years.
Michael McWilliams is with the Research Center of Quantitative Economics at the University of Michigan, which presented at the estimating conference. He says their forecast projects the state will be down eight and a half-billion dollars by 2022.
“About a third of that will be from a reduction of sales tax, another half from reductions in income tax collections, maybe ten percent from businesses and everything else filling out the rest.”
McWilliams says their modeling counts on some assistance coming from the federal government.
There is some good news - McWilliams says that while the economy is experiencing a steeper drop than the Great Recession he thinks it will recover faster.
