State Revenue Estimates for Fiscal Year 2019 are Mixed
Posted on January 12, 2018
On Jan. 11, the state treasurer and the directors of the House and Senate fiscal agencies convened the state’s annual January revenue estimating conference. The conference is used to create a revenue forecast that the Legislature will use to develop the fiscal year (FY) 2018-2019 state budget and update revenue expectations for the current fiscal year.
For the current FY 2018, state general fund (GF) revenues were revised downward by $101 million, while the School Aid Fund (SAF) is now estimated to be $114 million higher than projected in May 2017. Expected GF for FY 2019 is also $150 million lower than estimated last May.
The Senate Fiscal Agency noted the state's GF will soon be lower, when adjusted for inflation, than it was in 1968, when 13 percent fewer people lived in Michigan.
Despite the lowered revenue estimates for general revenues, the state closed FY 2017 with a substantial balance of $643 million. The SAF finished FY 2017 with a $382 million balance. This has again spurred talk among lawmakers of reducing taxes to return the excess to taxpayers. However, with the downward estimates, the state will have a balance of only $1.6 million by the end of FY 2020. Any additional tax cuts would put all state programs, including those for healthcare, at risk.
The MHA is working to preserve state support and federal matching funds for Medicaid and the Healthy Michigan Plan in FY 2019. Gov. Rick Snyder’s administration will present its annual executive budget recommendation in early February; it is expected to include a continuation budget for Medicaid and use of the FY 2017 fund balances for future needs, such as road funding. For more information, contact Laura Appel at the MHA.
Posted in: Top Issues - Healthcare