Senate Fiscal Agency will report new shortfall in revenues
LANSING, MI – A report to be released today by a legislative budget office says Michigan's July tax revenues came in $50 million below expectations. That compounds the problems facing Governor Granholm and the Legislature as they try to balance the budget.
State officials adjusted their expectations in May, but they still weren't sufficiently pessimistic.
Jay Wortley of the state Senate Fiscal Agency says what's troubling is revenues still haven't stabilized, and the trend continues downward.
"The story is it looks like we're going to be down again in July close to the level of what we've been down the last two months, and that's not great news," Whortley says.
Wortley says revenue from boosted car and truck sales because of the cash for clunkers program could potentially make the news from August a little better.
By itself, a $50 million shortfall isn't a big deal in a combined General Fund and school aid budget that's more than $17 billion. But shortfalls month after month keep piling onto deficits that already add up to $2.7 billion.