Revenue in Michigan fell a little last month compared to a year ago. That’s according to recent reports from the state House and Senate Fiscal Agencies.
One of the main areas where revenue fell was business tax collections. The Senate Fiscal Agency blames some of that on refunds outpacing collections in some areas.
The reports note business tax revenue can be volatile to begin with since it can depend on the timing of refunds.
Meanwhile, income tax withholdings in January set a monthly record. But they still fell below expectations.
Sales and use tax collections remained strong.
As a result, revenue for Michigan’s General Fund is around $135 million below expectations so far according to the House Fiscal Agency analysis. Meanwhile, the School Aid Fund is around $50 million above that target.
Economists warn not to read too deeply into any one month’s report.
