2010-2011 Revenue Forecasts Look Grim
According to the Consensus Revenue Estimating Conference (CREC) on January 11, Michigan is facing at least a $1.725 billion budget hole for fiscal year 2011.
Based on the revenue projections from the Department of Treasury, the Senate Fiscal Agency and the House Fiscal Agency, the preliminary estimates have the General Fund between $1.3 billion and $1.5 billion short and the School Aid Fund (SAF) will be $425 million short, equating to a $268-per-pupil cut on top of the $168-per-pupil cut schools are scheduled to take this year.
The only good news of the day is that no action should be needed for FY 2010, with the combined $150 million hole in the General Fund and the School Aid Fund consumed by around $190 million in projected lapsed money.
The greatest problem facing the Legislature is that the state won't have the more than $1 billion in federal stimulus money to fall back on that it did in FY 2010.
For more details, read the Consensus Revenue Agreement, the Senate Fiscal Budget Review and the House Fiscal Economic Outlook.
