The Consensus Revenue Estimating Conference (CREC) was held on May 15 to revise the January state revenue estimates. It comes as no surprise that the current projections are not positive and show a $3.2 billion decrease in state (combined General Fund / General Purpose and School Aid Fund) revenue for 2020 and a $3 billion decrease for 2021.
The Department of Treasury uploaded the revised revenue sharing estimates for the bimonthly estimated payments for local governments for the June and August payments, which are shown as FY 20 Estimated. As many of you are concerned about what the future looks like in terms of revenue sharing dollars, the Constitutional and Statutory Revenue for the FY 2020 and FY 2021 projected amounts, and the change between the two in both dollars and percentage, have been updated based on the May consensus. These estimates are subject to further revision when another CREC is anticipated to be held in August or September.
The Michigan Department of Transportation (MDOT) has not yet posted updated Act 51 Allocations to its website Act 51 – Financial Outreach, but these updates are expected in the next few days. MDOT stated there will be approximately $269 million less to distribute in FY 2020 and $165 million less in FY 2021.
These are trying times and we are here to help any way that we can. Please reach out to your Yeo & Yeo Government Services Group professional for assistance.