CHICAGO — Michigan faces a $1.6 billion deficit next year as its federal stimulus funds run out, but the state could begin to see slight revenue growth by mid-2011, analysts said this week after releasing new estimates.

“The good news is that we’re forecasting the state’s economy will bottom out in 2011,” said Gary Olson, director of the independent Senate Fiscal Agency, which crafts revenue estimates jointly with the House Fiscal Agency. “The bad news is that the U.S. economy will probably start getting consistent job growth in the spring or the summer, but it will be at least another year before that happens in Michigan.”

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