Senate Fiscal Agency August Revenue Report

The Senate Fiscal Agency reported a 4.5 percent increase in the state’s General Fund and School Aid Fund, according to their monthly report. The General Fund was $17.3 million below expected; however the School Aid Fund offset this with a report of $29.1 million above forecasted revenue for August. Constitutional revenue sharing and other funds accounted for the remaining $4.1 million. Although a 4.5 percent total increase, the revenue was $50.5 million below expected levels, according to the Senate Fiscal Agency.

The income tax revenue has increased by 11.6 percent, or $708.2 million, with the net individual income tax collections increasing 9.5 percent. Withholding payments were also increased by 9.5 percent, $42.3 million higher than expected. Real estate transfer tax receipts increased by 33.3 percent with year-to-date revenue up 21 percent.

Sales tax was 0.4 percent below numbers last year, and $195.2 million below expected collections. Overall decreases in revenue are reported to be due to the Corporate Income Tax and the Michigan Business Tax, which totaled negative $28.8 million in combination with the Single Business Tax. Refund payments exceeded collections four times in the past six months. The year to date Michigan Business Tax revenue is $148.9 million below expected levels, with net revenue $17.9 million below for August. The year to date Corporate Income Tax revenue is $3.3 million below expected levels with August $13.1 million below.

The House Fiscal Agency also reported a 3.5 percent increase in total collections with the General Fund revenues $45 million higher than the previous year. The School Aid Fund was reported $95 million below due to weaker collection of sales tax and lottery transfers. Revenue collections are expected to be the same as the Senate Fiscal Agency.

posted by PAA Online , Friday, September 18, 2015 11:09 AM
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