To some extent, the fiscal 1984 Executive Budget can be viewed as a watershed in recent state financial history. It is widely believed that Michigan is at last emerging from the prolonged recession that has precipitated a seemingly endless series of budgetary adjustments and fiscal crises. The financial position of the state, although still deep in deficit, is improving and should be positive by the end of fiscal 1985. The March tax increase expanded the available revenues of the state so that, with some prudence, state officials should find ample resources in fiscal 1984 to support state programs. And, although welfare caseloads are projected to continue their rise into 1984, the outlook is for stabilization and perhaps an opportunity for state policymakers to order spending priorities in accordance with long-term goals for economic development. In short, the stage is set for a fresh start.