Roads and education would see a large boost in funding under Governor Gretchen Whitmer’s executive budget recommendations. Speaking before a joint hearing of the House and Senate Appropriations Committees, she focused on improving public education, closing the skills gap, helping businesses find talent, ensuring clean drinking water, and fixing the roads. Pointing to the stagnant investment since 2000, the governor is proposing increasing revenue to fill that gap, along with $100 million in budget reductions. The budget totals $60.2 billion, including $14 billion to the School Aid Fund and $10.7 billion in General Fund appropriations.

Governor Whitmer laid out her 2030 goals for Michigan; 90% of roads in good/fair condition, 100% of communities have clean drinking water, 60% post-secondary attainment, and make Michigan a top 10 state in 3^rdgrade literacy. She stated that her budget proposal for the upcoming 2019 – 2020 Fiscal Year will put Michigan on the path to achieving those goals. While she works with the legislature in the coming months to finalize the state budget, she has called for them to partner together to make Michigan a model for bipartisanship.

Governor Whitmer’s proposals include:

Increased Spending on Infrastructure Improvements:

• Create the Fixing Michigan Roads Fund, increasing revenue by $2.5 billion annually.
• The gas and diesel tax will increase by 45 cents/gallon by phasing in the increase in three 15-cent increases on October 1, 2019, April 1, 2020, and October 1, 2020. 
• To offset the increased cost, she is proposing an increase to the Earned Income Tax Credit from 6% to 12% and repealing the pension tax.
• An independent Fixing Michigan Roads Review Commission would be created. Comprised of transportation funding experts, it will review progress at the midpoint of the 10-year plan and recommend any adjustments.

Education:

• Both public universities and community colleges would receive a 3% increase for operations.
• Public university tuition restraint will be set at 3.2%.
• $507 million increase to K-12 funding, which is an average increase of $120-$180 per pupil using a weighted formula.
• To be implemented in 20201, the Michigan Opportunities Scholarship would provide residents two-years of free community college or assistance at a four-year university.

Drinking Water:

• $120 million for improvements to water infrastructure, including implementing the Lead and Copper Rule and the identification, treatment, and cleanup of PFAS.
• $60 million to install hydration stations in school buildings that still have lead plumbing.

Other Highlights:

• Create tax parity between traditional corporations and pass-through entities. 
• A 3.2% increase in constitutional payments to local governments
• Increase of 3% to Cities, Villages, and Townships
• $150 million deposit into the state’s Rainy-Day Fund
• $40 million for the School Employees Retirement Reserve Fund
• $15 million for the Flint Reserve Fund
• 50 new recruits to the State Police Trooper School
• $14.1 million to enhance the secure communications network used by first responders

For more information, please visit www.michigan.gov/mibudget.

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