LANSING, MI (AP)-- Michigan’s budget outlook is not as bad as was thought thanks to federal pandemic relief aid, higher consumer spending and tax payments than expected, and a quicker recovery by the auto industry.
In May, Gov. Gretchen Whitmer’s administration and legislative economists projected a combined $6.3 billion shortfall in two main funds over two year. They revised that hole downward, to $3.4 billion, in a meeting Monday. That means the situation isn't as dire as the Democratic governor and Republican-led Legislature work to pass a budget.
The shortfall for the coming fiscal year is less than $1 billion.
