While there are concerns that Michigan’s economy will be indefinitely impacted by COVID-19 via online sales that dig into brick-and-mortar store revenue, vacancies in office buildings due to work-from-home arrangements and other related forces, the state is seeing bright spots in Michigan’s rebound.
In mid-June, Fitch Ratings improved Michigan’s general obligation bonds AA credit rating from a “stable outlook” to a “positive outlook” after the state announced new revenue projections rising from a $3 billion deficit to a $3.5 billion surplus.
“Our early, decisive efforts to respond to the COVID-19 pandemic are paying dividends as we emerge from the pandemic stronger than ever, poised for an economic jumpstart,” said Gov. Gretchen Whitmer. “With billions in federal stimulus and a $3.5 billion state budget surplus, we must continue our forward momentum and channel it into raising wages, invest in small businesses and uplift families. I look forward to engaging the Legislature, local communities and Michiganders as we continue thinking through the best ways to turbocharge our economy and make a real difference in people’s lives.”
In the spring, state Treasurer Rachael Eubanks noted federal stimulus programs were producing a boost to the state’s future economic outlook and revenue picture.
“Public health and the economy go together — the better the health situation, the better the economy,” she said. “As our vaccination rate continues to rise and our cases continue to fall, we are moving closer to normalcy. There is a great sense of optimism as we move forward this year.”
The state unveiled its Michigan Economic Jumpstart Plan in June, which allocates a portion of federal relief funding to support and invest in working people and small businesses, increases incentives to boost wages to attract applicants, provides grants to small businesses to ramp up hiring, and expands access to child care.
“The governor’s plan will jumpstart the economy by providing the support that small businesses need to recover and grow and by helping parents find the child care they need to get back to work,” Eubanks said.