Michigan's Economy is Stable, Federal Uncertainty Continues

LANSING, Mich. - State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary today reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2026, the 2027 fiscal year and the initial forecast for the 2028 fiscal year.

"Michigan's economy continues to demonstrate resiliency and stability despite federal uncertainty," State Treasurer Rachael Eubanks said. "Revenue collections are meeting expectations, and our long-term economic outlook remains positive with steady unemployment and job growth. Michigan's foundation is strong, and we remain cautiously optimistic as we look ahead to the coming years."

Overall Revenue Forecast (General Fund and School Aid Fund Combined)

General Fund

School Aid Fund

These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to today, including unexpected changes in the national economy and international economic issues.

"With federal cuts to Medicaid and food assistance, rising health care costs, and constantly changing national policy, we're facing a unique set of challenges that directly affect our bottom line," said State Budget Director Jen Flood. "Now our work begins to finalize Governor Whitmer's budget recommendation with a focus on improving student literacy, lowering costs, and protecting access to health care."

FY 2026 spans from Oct. 1, 2025, to Sept. 30, 2026, while FY 2027 spans from Oct. 1, 2026, to Sept. 30, 2027. FY 2028 begins on Oct. 1, 2027.

The January Consensus Revenue Estimating Conference's detailed forecast - as well as presentations from today's session - can be found at https://www.michigan.gov/crec.

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