Today, before a joint session of the House and Senate Appropriations Committees, Governor Rick Snyder, Lt. Governor Brian Calley, and incoming State Budget Director John Walsh presented the executive budget recommendations for the upcoming fiscal year. While the overall budget growth over the current fiscal year is only 0.6%, the Governor announced new initiatives and increased funding in several areas, as a result of decreased funding in other budget areas or completed projects. Governor Snyder also called for several one-time funding projects, most notably $46 million to improve Michigan’s Indigent Defense system. Additionally, the Governor requested $13.7 million to transition prisoner food service from the private sector, back to State Government.

Similar to his State of the State Address, the Governor highlighted the success achieved under his administration and urged the legislature to continue Michigan on the good fiscal path. One staggering statistic; when he took office the state’s “Rainy Day Fund” was $2 million, by the end of FY19 the fund with total $922 million. Additionally, Michigan’s unemployment rate has fallen by 10% since 2009, per capita income growth from 2010 – September 2017 was 28%, and we are ranked sixth nationally for private-sector job growth.

The gross spending in the 2018-2019 Fiscal Year budget totals $56.8 billion, with almost three quarters of that spending dedicated to education and health and human services. Highlights of the Governor’s recommendations include:

K-12 Schools:

• A $312 million increase to the foundation allowance, which is an increase of $120-$140/per pupil

Community Colleges:

• Continued operations funding levels at $319.1 million
• $23.9 million to 24 community colleges through the Local Community Stabilization Authority

Higher Education:

• An increase to university operations of $28.6 million
• 2% increase to total funding
• 3.8% tuition restraint

Infrastructure:

• $175 million to accelerate roads investments
• $20 million one-time investment to increase statewide broadband access
• $110 million for water infrastructure improvements

Local Governments:

• Redistribute excess Personal Property Tax reimbursement funds to locals, broken up as: 48% to cities, 30% to counties, 15% to community colleges, 5% to townships, and 2% to villages

Public Safety:

• Funding for 50 additional state troopers
• Funding 80 state troopers for the state’s attrition school
• $1.25 million to replace outdated technology

Using the Governor’s recommendations as a template, the House and Senate Appropriations Committees will now begin working on their department budgets and holding committee hearings on each proposal. The new fiscal year begins on October 1, 2018.

For more additional information and budget documents, please visit www.michigan.gov/mibudget or michigan.gov/budget.

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