By Mike Kruzman & Jon King / news@whmi.com


Facing a nearly billion dollar deficit, one local legislator is calling for the full reopening of the economy.

The Consensus Revenue Estimating Conference met on Monday, bringing together state economists to forecast revenue projections upon which Michigan’s budget is built. In May, the Whitmer Administration and legislative economists projected a combined $6.3 billion shortfall in two main funds over two years. On Monday, they revised that hole downward to $3.4 billion, meaning the shortfall for the coming fiscal year is less than $1 billion. Federal pandemic relief aid, higher consumer spending and tax payments than expected, and a quicker recovery by the auto industry were all credited as reasons.

In reaction, Republican State Representative Ann Bollin of Brighton Township said, Monday, that a safe, full reopening of Michigan’s economy is needed to stabilize the state budget and preserve essential public services over the long term. While the outlook is better than previously anticipated for both the current fiscal year and the upcoming one, Bollin feels this is a one-time phenomenon that is being artificially inflated by the federal government’s COVID-19 stimulus package. The state, local governments, residents, and employers have received approximately $43-billion in COVID-19 relief funds to date through stimulus checks, the payroll protection program, unemployment benefit boosts, and other programs.

Bollin said, in a release, that that the stimulus and other actions taken by the Trump Administration have helped the state budget to this point, but that they cannot rely on the federal government to “continuously bail out the states” and said we must take action in Michigan to lay the foundation for a sound budget moving forward. Bollin said that includes reopening the economy safely and completely, although she offered no specifics how to do that, and finished by saying that smart decisions needed to be made to prepare for what happens when federal assistance ends.


Meanwhile, State Senate Education and Career Readiness Committee Chairwoman Lana Theis, R-Brighton, issued the following statement regarding new state revenue projections from Monday’s Consensus Revenue Estimating Conference:

“The state’s economy appears to be slowly bouncing back, but we are still facing a budget deficit as we continue to battle the coronavirus. Support from President Trump’s administration and Congress has helped thus far, but we cannot bank on that funding being available in the future. The ongoing budget deficit projected by economists underscores our need to fully reopen Michigan’s economy and get people back to work, smartly, safely, and as soon as possible. With our state fully open for business, we can ensure the necessary funding to provide every Michigan student a quality, safe education, and that remains my top goal. Until then, we must do what we can with what we have to prioritize K-12 education funding as we continue our work on balancing the state’s next budget. I am especially focused on ensuring student access no matter where they learn, and on fully funding those school districts that are experiencing increased pupil counts. I am confident the Legislature and governor can work together to approve a budget that achieves our educational goals, and I am hopeful that our governor learns to trust the people she works for and fully reopens our state before it’s too late.”