News Bite

Federal Cash Floodgates Opened Wide To Michigan In 2020

Total state government spending went from $57.8 billion to $67.0 billion in one year

The state of Michigan received $10.2 billion more from the federal government in the 2019-20 fiscal year than the year before, which is far more than the $1.1 billion decline in state revenue from state sources during the same period.

Overall, the federal government contributed $23.2 billion to Michigan government spending in 2018-19 and $33.4 billion in the 2019-20 fiscal year, which ended Wednesday.

For the 2020-21 fiscal year, the state is projected to receive $25.7 billion in federal money.

The huge increase in money from Washington was mostly due to the coronavirus relief bills passed by Congress.

Total state spending from all revenue sources increased from $57.8 billion in 2018-19 to $67.0 billion in 2019-20.

That’s $21.1 billion more than the amount the state spent in 2010-11, or nine years ago. After adjusting for inflation, the real increase is about $13.9 billion, or a 26% increase over that nine-year-period.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.