Michigan budget plan includes unexpected $235M in extra income

LANSING, Mich. (FOX 2) - It was a boring day for those coming up with Michigan's next budget - which is exactly how the state treasurer likes it.

It's "good for forecasting revenues and finalizing a budget," said Rachael Eubanks.

Eubanks, along with the government's other top bean counters gathered Friday to work on finalizing the annual budget for Michigan in the upcoming fiscal year. 

"Tax collections are strong. Corporate income tax, income tax withholding, and interest earnings are strong. Economic growth and higher wages are leading to higher income tax collections," said Eubanks during a Zoom meeting.

She said individual spending was up and wage increases were outpacing inflation - both good indicators of a healthy economy.

"Our labor force is at its strongest since 2001," said Eubanks.

The good news doesn't stop there. Since last January, the state coffers have grown by $235 million dollars, which state officials were not expecting. 

That's for lawmakers to spend as they compose the new state budget. The process has included criticism from Republicans, specifically from Senate Minority Leader Aric Nesbitt (R-Porter Township) who accused Democrats of "squandering the state's $9 billion budget surplus on pet projects and corporate handouts in 2023."

He also claimed the governor had raided the teacher pension fund to pay for her education budget.

While rare, it's not outside of the possibility the state budget director would take a political shot at any lawmaker. But on Friday, Jen Flood did just that.

"The minority leader has a new found support for teachers and retirees it seems because his votes earlier on in his career cut funding for schools and taxpayers," she said.

Despite concerns about the financial hit that electric vehicles could impose upon U.S. automakers, the state treasurer didn't believe it would impact Michigan revenue streams for now. 

"I don't think that's a troublesome point yet," Eubanks said. "We've seen really strong profit-sharing happen with the major car makers and while there is that potential risk on the horizon, its not something se can see today.

Lawmakers will try to have a finished state budget by the end of June.