LANSING, MI (WOWO) Michigan state officials are warning of a roughly $1 billion shortfall in revenues for the upcoming fiscal year, according to the state’s Consensus Revenue Estimating Conference. State Budget Director Jen Flood said Friday that changes to state and federal tax laws, along with a recently adopted $2 billion road repair plan, are the primary factors contributing to the revenue decline. Officials lowered General Fund estimates by $981 million while projecting a $201 million increase for the School Aid Fund, for a combined $1.1 billion reduction in revenues for the 2026-27 fiscal year, which begins October 1, 2026. Republican lawmakers are urging significant spending cuts in response to the projections. House Speaker Matt Hall called for reducing approximately $1.3 billion from next year’s spending plan, citing the need to eliminate “ghost jobs” and curb what he describes as wasteful spending. Democrats and other state officials are emphasizing the stability of Michigan’s economy. State Senator Sarah Anthony, chair of the Senate Appropriations Committee, said in a statement that careful governance and sound economic forecasting will allow the state to maintain a responsible budget. State Treasurer Rachael Eubanks described the economic outlook as “stable” despite uncertainties at the federal level. The new revenue forecast kicks off Michigan’s annual budget process. Governor Gretchen Whitmer is expected to propose an executive budget in February, with the House and Senate negotiating a final budget deal before the new fiscal year begins. The post Michigan State Budget Forecast Shows $1.1 Billion Shortfall appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less