Michigan Boating Industries Association (MBIA) has published the following in regards to Michigan economy and how it is impacting the boating industry.
Speakers addressing the annual University of Michigan Research Seminar in Quantitative Economics in Ann Arbor told attendees the economic outlook for the coming two years was, in their opinion, optimistic. The speakers noted the state had successfully completed the fifth year of its recovery from the impacts of the Great Recession, with the state expected to replace more than half the jobs it lost in that event by the end of 2016. In fact, their predictions forecast job growth would continue at a pace similar to that experienced in 2012 and 2013 during that time.
In terms of numbers, economist George Fulton told his audience he expects the state to generate 59,400 new jobs in 2015 and another 73,200 in 2016. He also predicted, from the recovery’s start in 2009, the state will have gained a total of 462,600 jobs by the end of 2016. Regarding unemployment, Mr. Fulton is projecting a rate of 6.7 percent by the end of 2015 and 6.3 percent by the end of 2016. Contributing to that growth, the rate of inflation is expected to remain low with the rate for 2014 forecast to be 1.4 percent while 2015 is now pegged at 1.1 percent and 2016 at 1.4 percent.
Income growth will be fairly robust, with the economic models expecting it to accelerate to 4.6 percent in 2015 and 4.7 percent in 2016 Personal Property Tax exemptions are forecast to reduce education tax revenues by $10 million for the 2014 and 2015 Fiscal Years, with 2016 Fiscal Year reductions expected to total around $30 million. With state revenues expected to decline by roughly $110 million following the enactment of a new law making it more difficult to collect a firm’s back taxes from its individual officers, a 3.7 percent increase is forecast for Sales and Use Tax revenues in 2015 followed by a 3.4 percent rise in 2016.
Revenue from the state’s business tax program, now in its fourth year, is expected to stabilize with revenues climbing 33 percent in 2015—following a 30-perent decline in 2014—and another 5 percent in 2016. Also, with early numbers indicating a 1.9 percent growth rate for the 2014 Fiscal Year, revenues in the School Aid Fund are projected to rise by 3.6 percent in the 2015 Fiscal Year and 3 percent in the 2016 Fiscal Year.