Even without gas and vehicle registration tax hikes
The formal revenue estimate crafted by the state’s official number crunchers suggests that Michigan’s state government will be raking in more tax dollars next year.
Two of the state’s largest funds into which tax revenues flow are projected to increase by a combined $725 million next year.
The increases to the state’s General Fund and School Aid Fund are due entirely to economic growth over the past year, not higher rates for the taxes directed their way. (Importantly, those funds do not get money from fuel and vehicle registration taxes, which were increased last year.)
The General Fund’s revenue is expected to increase from $9.8 billion this year to $10.2 billion in fiscal year beginning Oct. 1, 2016. The School Aid Fund is projected to increase from $12.1 billion to $12.5 billion.
The estimates are the product of a revenue estimating conference held in January and form the basis of Gov. Snyder’s Executive Budget. They represent the consensus of experts from the House and Senate fiscal agencies and the Michigan Treasury Department.