Today, at the newly opened Heritage Hall within the State Capitol, Governor Gretchen Whitmer presented her executive budget recommendations for the upcoming 2023 – 2024 Fiscal Year. Joined by Lt. Governor Garlin Gilchrist and State Budget Director Chris Harkins, she outlined a number of ongoing and new initiatives. The budget recommendations total $79 billion, which includes a General Fund total of $14.8 billion and a School Aid Fund total of $19 billion. The proposals also include a significant amount of one-time funding. The governor stated her biggest concern is lowering the costs for residents and she believes the budget delivers on a number of ways that will help Michigan residents. Specifics within the budget recommendations include:

K-12 Education:

• • $900 million deposit into a new rainy day fund for schools
  • A 5% increase to the base per-pupil funding
  • $257.3 million toward the goal of providing Pre-K for all four-year-olds
  • $195 million for the MI Future Educator Program
  • $160 million to provide free breakfast and lunch to all public school students
  • $4 million to establish the Nature Awaits program, providing every fourth grader with a free field trip to a state park

Higher Education and Workforce Development:

• • A 4% ongoing increase for university and community college operations
  • $200 million to assist community colleges and universities in improving existing facilities, infrastructure, and technology
  • $140 million to temporarily lower the eligibility age for the Reconnect program from 25 to 21
  • $55 million for a Student Wellness Fund to help improve student wellness resources on campus

Public Health:

• • $210.1 million to increase wages for direct care professionals in nursing homes and extended care facilities
  • $58 million to implement recommendations from the Racial Disparities Task Force
  • $30 million to increase support to local health departments to provide essential services

Public Safety:

• • $220.9 million for Michigan Indigent Defense Commission grants to local judicial systems
  • $36.6 million in new statutory revenue sharing dedicated to public safety
  • $18.2 million to provide in-service training to licensed law enforcement officials
  • $5 million to expand the Jobs Court program

Infrastructure:

• • $200 million to replace or rehabilitate structurally deficient bridges
  • $65 million to expand electric vehicle charging infrastructure networks and access
  • $45 million to support local government and businesses transitioning their fleet to electric vehicles and clean fuels

Housing:

• • $212 million for residential efficiency improvements
  • $100 million in competitive grants for community development and placemaking efforts in downtowns
  • $50 million in grants to rehabilitate vacant, underutilized, blighted, and historic structures

Economic Development:

• • $500 million deposit into the Strategic Outreach and Attraction Reserve (SOAR) Fund
  • $135 million for the Michigan Main Street Initiative
  • $10 million to support outdoor recreation businesses

Additionally, Governor Whitmer proposed temporarily pausing the sales and use taxes on the first $40,000 of the purchase of electric vehicles of up to $2,400, a $200 million deposit into the Budget Stabilization Fund, and a 5% increase in both ongoing and one-time statutory revenue sharing to counties, cities, villages, and townships.

These recommendations are another step in the process of putting together a state budget. The House and Senate Appropriations Subcommittees will meet over the upcoming months to work on, and finalize, the budgets within their purview with a target completion date of June 30.

For more information and analysis, please visit www.michigan.gov/budget.

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