LANSING, Mich. —- Michigan’s economy is improving, according to Governor Gretchen Whitmer. With the multi-billion-dollar revenue surplus following the COVID-19 pandemic, as well as the general improved status of Michigan’s economy- Michigan’s credit rating has moved from a “stable outlook” to a “positive outlook”.
State revenue projections have gone from a $3 billion deficit to a $3.5 billion surplus.
Governor Whitmer’s confidence in Michigan’s economic future was apparent in a statement made earlier today,
This rating is a sign of confidence in Michigan’s hardworking people, close-knit communities, and innovative small businesses,” said Governor Whitmer. “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. 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.”Governor Gretchen Whitmer
The announcement also detailed the $603 million of limited obligation revenue funds that will be issued through the Michigan Strategic Fund to support the Flint Water Advocacy Fund.
Fitch and Moody’s Investor Services is the entity behind giving Michigan a credit rating. Before the $603 million in limited revenue obligation bonds were offered, Fitch and Moody’s had to review the state’s economy, finances, and various other factors to help determine a credit rating.
State Treasurer Rachael Eubanks commented on the state of Michigan’s economy, noting the effort that was put in responding to COVID-19,
I am delighted how Wall Street has recognized the hard work and effort taken to react to the impacts of COVID-19 here in Michigan,” State Treasurer Eubanks remarked. “The credit rating agencies have again displayed confidence in Michigan’s economic and financial health by affirming their credit ratings – with Fitch even boosting their outlook – showing investors that our state is a great investment.”State Treasurer Rachael Eubanks
Money from the bond sale will be utilized to make a loan to the Flint Water Advocacy Fund for the purpose of transferring $600 million to the Flint Water Crisis Qualified Settlement Fund. The transference of funds is a part of a settlement agreement entered between the state of Michigan and plaintiffs concerning state defendants’ legal liabilities from the Flint Water Crisis.