Though Michigan continues to enjoy its economic recovery, it won't produce enough new jobs to replace the ones that were lost over the last decade. State economists report the state will have about $8 billion to spend on state services next year.
"The states economy is expanding. That's a good thing after ten years of decline. It's slow, but going in the right direction."
On the up side, the domestic car markers are holding onto their market share and for the first time in a long time, they could produce 16 million cars. At the depth of the recession, that figure was about 10 million.
"Light vehicle sales are up about 16 million in another two years. That's a very positive thing for the state economy," said Mitch Bean, with the Great Lakes Economic Consulting.
The more jobs you have, the better the economy is, but while there will be a drop in unemployment to about 8.6 percent, the thousands of jobs that were lost, are not coming back soon.
"We were in the dumper and even after six years of recovery, we will still only gain back about 40 percent of the jobs we lost in the last decade," said Dr. George Fulton, with the University of Michigan.
For state lawmakers who will write the new budget, this means fewer dollars to spend and it may even mean some service cuts. Robert Emerson, the former budget director under the Granholm administration, believes all of the Governor Snyder Tax Cuts and the loss of deductions for taxpayers is sucking disposable money out of the economy, which means fewer dollars flowing.
"With the phase in of the tax cuts, I don't think you are going to see an increase in state spending on programs that effect people in the state," said Emerson.
They agree there is about $8 billion to spend, which is down just over 5 percent from last year. Not exactly a booming recovery.
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