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Demand for cars plus cash reserve leave MI with healthy budget projection

Governor Gretchen Whitmer photo
Associated Press

New revenue projections adopted today suggest the Michigan Legislature could have a 1.2 billion dollar budget more than expected to work with in the coming fiscal year. That’s despite the likelihood of a mild recession.

The revenue projections were adopted by a state board as part of the budget process. These numbers will be used by Governor Gretchen Whitmer and the Legislature.

The surplus might be large enough to automatically reduce the state income tax rate by some fraction of a percentage point.

But Treasurer Racheal Eubanks said that’s not a sure thing, not before updated revenue estimates in the spring.

“Certainly there is potential for a trigger. However, to say that is likely at this point I think is a bit premature.”

The estimates are based on economic forecasts that suggest the state’s well positioned to weather a mild recession.

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