The purpose of the Consensus Revenue Estimating Conference (CREC) is to make the best educated estimates on how much revenue the state can anticipate, based on various economic factors.  Every year, the Research Seminar on Quantitative Economics at the University of Michigan presents on their projected economic data, in addition to another industry leader. 

Biannually, the CREC is held in the House Appropriations Committee room. In attendance are members of the House and Senate Appropriations Committees, the State Treasurer, State Budget Director, and the directors of the House and Senate Fiscal Agencies.   

The CREC held in January presents the numbers the legislature and executive office will use when crafting budgets for the upcoming fiscal year. They look not only at specific revenue numbers, but at the economic factors that affect the budget. These factors include auto and home sales, wage and salary growth, and inflation. However, since Michigan’s economy is effected by the national and world economy, they also look at factors and projections on a national and global scale. Once the key stakeholders come to a consensus on various revenue numbers, the budget process for the year officially begins. 

Following months of work and committee hearings, the legislature is generally close to wrapping up budgets for the upcoming fiscal year. May’s CREC is used to revisit economic and revenue data, to get a better grasp on what can be anticipated in the upcoming fiscal year. The legislature will use the new data to make changes to the budgets where needed, and prepare to vote on the final product to send to the governor for final approval. 

Visit our blog on the afternoon of January 11, 2019, for a full recap of the CREC. Additionally, we will post a recap of May’s event, on a date yet to be announced.

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