STATE GOVERNMENT FINANCES: 1998


                                                    Amount          Percent            Per
Michigan                                    (in thousands)     Distribution         capita

Population (thousands)                               9,817                                
Total Revenue                                   40,069,007           100.00       4,081.49
  General revenue                               36,084,560            90.06       3,675.63
    Intergovernmental revenue                    8,557,047            21.36         871.63
    Taxes                                       21,215,742            52.95       2,161.07
      General sales                              7,572,789            18.90         771.38
      Selective sales                            1,928,658             4.81         196.46
      License taxes                              1,104,998             2.76         112.56
      Individual income tax                      6,316,125            15.76         643.37
      Corporate income tax                       2,354,764             5.88         239.86
      Other taxes                                1,938,408             4.84         197.45
    Current charges                              3,749,238             9.36         381.90
    Miscellaneous general revenue                2,562,533             6.40         261.02
  Utility revenue                                        0             0.00           0.00
  Liquor stores revenue                            513,890             1.28          52.35
  Insurance trust revenue                        3,470,557             8.66         353.52
                                                                                          
Total expenditure                               37,409,791           100.00       3,810.62
  Intergovernmental expenditure                 15,430,418            41.25       1,571.77
  Direct expenditure                            21,979,373            58.75       2,238.85
    Current operation                           15,534,549            41.53       1,582.37
    Capital outlay                               1,624,034             4.34         165.43
    Insurance benefits and repayments            2,948,674             7.88         300.36
    Assistance and subsidies                       998,553             2.67         101.71
    Interest on debt                               873,563             2.34          88.98
Exhibit: Salaries and wages                      5,378,975            14.38         547.91
                                                                                          
Total expenditure                               37,409,791           100.00       3,810.62
  General expenditure                           34,066,033            91.06       3,470.02
    Intergovernmental expenditure               15,430,418            41.25       1,571.77
    Direct expenditure                          18,635,615            49.81       1,898.25
  General expenditure, by function:                                                       
    Education                                   15,405,529            41.18       1,569.23
    Public welfare                               6,835,409            18.27         696.27
    Hospitals                                    1,118,566             2.99         113.94
    Health                                       2,200,499             5.88         224.15
    Highways                                     2,186,323             5.84         222.70
    Police protection                              255,842             0.68          26.06
    Correction                                   1,314,740             3.51         133.92
    Natural resources                              376,934             1.01          38.40
    Parks and recreation                            46,635             0.12           4.75
    Governmental administration                    755,266             2.02          76.93
    Interest on general debt                       873,563             2.34          88.98
    Other and unallocable                        2,696,727             7.21         274.69
  Utility expenditure                                    0             0.00           0.00
  Liquor stores expenditure                        395,084             1.06          40.24
  Insurance trust expenditure                    2,948,674             7.88         300.36
                                                                                          
  Debt at end of fiscal year                    16,147,205           100.00       1,644.78
                                                                                          
  Cash and security holdings                    66,027,442           100.00       6,725.66