Michigan economy sees modest recovery as tax revenue outpaces expectations despite job losses

Michigan lost roughly 8,000 jobs over the past year, yet state tax collections are higher than projected. Revised revenue estimates give lawmakers about $481 million more for the upcoming budget, with General Fund revenue expected at $14.3 billion, up from the previous $14.1 billion forecast. Gains are driven by stronger income‑tax, online‑gaming and property‑tax receipts.

State officials warn that geopolitics, international conflicts and energy‑price volatility could pose risks to the outlook. Despite these uncertainties, economists describe the labor market as being in a “soft patch” with a modest recovery anticipated over the next few years. Budget negotiations will have to balance the revised revenue outlook against rising health‑care, child‑care and SNAP costs.