State Revenue and Unemployment Updates

The $1 billion in February revenue to the General Fund and School Aid Fund fell $30.5 million short of the Senate Fiscal Agency’s consensus estimates and were 0.5 percent below 2014 numbers. General Fund revenue was $35 million above expected February levels; however, School Aid Fund revenues fell $59.9 million short.

According to the report, the revenue shortfall can be largely attributed to poor sales tax contributions. February 2015 sales tax receipts were 5.3 percent below the prior year and $65.2 million below estimates. The report also referenced weak individual income tax withholding and higher than expected refunds under the Michigan Business Tax.

Meanwhile, the state’s unemployment rate continued to slide downward in January – decreasing another 0.1 percentage points to 6.3 percent. Total employment increased by 22,000 in January leading to the 6.3 percent rate, which is the lowest for Michigan since November of 2002.

The unemployment rate for the Detroit-Warren-Dearborn metropolitan area fell 0.3 points from 7.7 percent to 7.4 percent.

Most of the major industry sectors felt the gains, with construction and professional/business services both increasing by 6,000, manufacturing and leisure/hospitality services both increasing by 5,000, and transportation and utilities increasing by 4,000. The only major reduction was in government, with a loss of 4,000.

posted by PAA Online , Friday, March 13, 2015 10:18 AM
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