Senate Fiscal Agency Releases Economic Forecast

Liz Gullett

Dec 22, 2016

This week the non-partisan Senate Fiscal Agency (SFA) released their economic outlook for FY 2015-16, FY 2016-17, FY 2017-18, and FY 2018-19. Highlights from the report include:

The U.S. economy is projected to expand by 1.4% in 2017, 1.3% in 2018, and 2.1% in 2019.
The Michigan economy is forecasted to grow 1.3% in 2017, 1.4% in 2018, and 2.1% in 2019
In FY 2016-17, General Fund/General Purpose (GF/GP) and School Aid Fun (SAF) revenue is projected to increase 2.7% from the prior year.
In FY 2017-18, the GF/GP and SAF revenue should increase 2.5 % from the prior fiscal year, however that is $93.2 million below May 2016 Consensus Revenue Estimates.
The FY 2015-16 budget will close with a $589.8 million balance.

On January 12, the SFA, along with the House Fiscal Agency, and the Treasury Department will meet to hold the January Revenue Estimating Conference. There they will all present their economic forecasts and come to a consensus on the numbers that will be used in drafting the FY 2017-18 state budgets.

To read the full economic forecast from the SFA, please click here.

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