LANSING –- Projections for Michigan’s economy over the next two years show promise although the impact on the state budget remains significant. State fiscal analysts agreed at the annual January Revenue Estimating Conference that Michigan still faces an expected budget deficit for 2012 of $1.8 billion.
In response to both the economic and budget projections, Sen. Darwin Booher, R-Evart, issued the following statement:
“I am hopeful we are on our way to a recovery and that we will be able to achieve these projections. Today’s forecast is positive, showing that personal income and state revenues will be up next year and unemployment will decrease. The best news might be that – for the first time in years – the state’s job outlook is positive.
“If this happens, Michigan’s economy will have turned the corner. To make sure we accomplish this goal, we must keep our belts tight, stay conservative and ensure each tax dollar is spent wisely.
“I remain mindful that many factors can change – from increasing gas prices and interest rates to enacting bad government policies. Each one could seriously impact today’s projections.
“Today is a day of hope and challenges. Hope for the economy and challenges to balancing the state budget. This is just the first step to knowing our new governor. In the coming days he will outline his plans for Michigan at the state of the state address and then present a budget blueprint. We have a long way to go and much to do, but I am confident Michigan’s future is bright.”