Consensus Revenue Estimating Conference Sets Revenue Expectations

Jennifer Smith

By Jennifer Smith, MASB Director of Government Relations

DashBoard, May 18, 2016

The Consensus Revenue Estimating Conference met Tuesday to set final revenue estimates for this fiscal year and the next. Legislative leaders will use these numbers when setting budget targets. While a small increase over last fiscal year was still projected, revenues are coming in lower than anticipated at the January conference.

School Aid Fund revenues are expected to be lower for both this fiscal year and the next. This year, the final total is expected to be $64.2 million less than projected in January. Next fiscal year, the amount that the budget will be based on is an even bigger adjustment. Estimates now are coming in $83.8 million lower than anticipated in January. Much of this is due to a reduction in the sales tax base. This can be caused by lower retail sales, but could also be a symptom of the individual industry exemptions that have been granted over the last few years.

Gov. Rick Snyder and the Senate have listed education and the per-pupil foundation as high priorities for this upcoming budget, along with public safety, assistance for the Flint water crisis and Detroit Public Schools. The Governor will now sit down with legislative leaders to set final target numbers and priorities for the various department budgets, as well as the School Aid budget.

Conference committees are expected to be named for the various budgets later this week or early next. Once targets are set, those committees will begin meeting to finalize the budget.

MASB will continue to monitor the budgets and keep you informed of the next steps in the process. In the meantime, be sure to communicate with your legislator on what parts of the budget are important to you and your district.

Read More DashBoard Articles