No, Michigan is Not Projected to Run a Deficit

Several media reports say that Michigan is projecting a “budget deficit.”

The Detroit News says, “The Senate Fiscal Agency warned this week the state's budget this fiscal year may run a $162.2 million deficit because tax revenues are not meeting projections.”

Mlive reports, “Michigan Democratic Party spokesperson Josh Pugh said in a release that highlighted a projected budget deficit next year and sluggish population growth.”

For The Record says: It is not correct that the state’s budget is expected to run a deficit nor are these fund projections due to a decrease in revenue.

According to the Senate Fiscal Agency report the media is basing their claims on, the general fund and School Aid Fund is expected to increase $663.7 million (3.1 percent) for the upcoming fiscal year.

The $162.2 million projected deficit refers only to the general fund. The School Aid Fund is expected to have a fund balance of $172.2 million. There is more to Michigan’s budget than just the general fund.