ESCANABA — Michigan’s budget for the 2020-21 fiscal year — once expected to include a multibillion-dollar deficit — may end up being much healthier than was previously anticipated. Local officials heard from state legislators about the budget during a joint governmental work session Friday.

“I believe the budget’s going to get passed here by the end of September, as it’s supposed to be,” State Sen. Ed McBroom said.

McBroom said budget estimates for the state are looking far better than they did earlier this year. He had recently heard projections that called for a deficit of approximately $350 million.

“I don’t think it’s going to be a rosy budget … but I think it’s going to be much less painful than we had anticipated,” he said.

Jeremy Hosking, director of Gov. Gretchen Whitmer’s Northern Michigan office, was also confident that the state would have a finalized budget for its 2020-21 fiscal year before October arrives.

“The governor is very optimistic that we will be able to have a budget done by the Oct. 1 deadline,” he said.

According to Hosking, another consensus revenue estimating conference for Michigan was held about a week ago.

“There was a lot of good news that came out of that,” he said.

Based on literature he reviewed Friday, Hosking expected to see a deficit of about $400 million in the state’s general fund for the 2020-21 fiscal year. However, he also expected a $350 million surplus in the school aid fund.

Hosking said a number of factors have played a role in the state’s improved financial situation.

“Key drivers for improving the budget outlook obviously have been the federal stimulus checks, enhanced unemployment benefits and then the federal program for paycheck protection,” he said.