Michigan has extra $235 million to spend in budget thanks to earned interest – By Paul Egan (Detroit Free Press) / May 18, 2024
LANSING — The state of Michigan is enjoying a significant new source of income — interest earned on its cash balances.
The state earned nearly $614 million in interest during the 2023 fiscal year and is on track to take in close to that this year, according to records produced at a Friday revenue conference at the Capitol. The conference, held twice yearly, is a key step in finalizing the state budget.
State interest earnings averaged just $3.2 million a year between 2013 and 2021, before jumping to $76.4 million in 2022, records show.
The boost to the general fund of more than $1 billion is the result of a combination of much higher state cash balances and high short-term interest rates.
