With a focus on education and skills, health and families, and climate and water, State Budget Director Chris Kolb presented the Executive Budget recommendations for the upcoming fiscal year beginning on October 1, 2020 to the House and Senate Appropriations Committees. The total budget spending is $61.9 billion, an increase of 3.9% from the current fiscal year, which includes a 5.8% increase in spending within the General Fund and 4.9% increased spending in the School Aid Fund. Constitutional revenue sharing would increase 1.9%, while statutory revenue sharing would increase by 2.5%, and county revenue sharing would see an increase of 2.5%. The recommendations also call for $15 million for the successful Pure Michigan campaign, as well as $27.9 million for the Going Pro program.

Additional budget recommendations include:

Education and Skills:

• • A 2.5% increase for universities and community colleges
  • An increase of 4.1% for school operations
  • The base foundation allowance will increase by $225 per pupil for districts at the minimum and $150 per pupil for districts at the maximum
  • Maintains nearly $60 million for Career and Technical Education
  • Increased funding for an additional 5,000 children to attend Preschool
  • $40 million in one-time grants for facility upgrades in schools
  • $35 million for the Reconnect Program
  • The creation of the MI Student Loan Refinance Program to allow students to refinance student loan debt at a lower rate through the Michigan Department of Treasury

Health and Families:

• • Expands childcare eligibility from 130% to 150% of the federal poverty level
  • 12 weeks of paid parental leave for state employees, including both parents and birth and adoptive parents
  • $21.6 million to double the number of physicians in rural hospitals
  • $37.6 million for the Health Mom, Healthy Babies program

Climate, Water, and the Environment:

• • $5 million for invasive species prevention and control
  • $40 million in grants to local governments to plan for and address changing climate conditions
  • $8 million to support the Brandon Road Lock and Dam project to prevent Asian Carp from migrating from the Mississippi River to the Great Lakes
  • $2.5 million for the Milliken Visitor Center near Arch Rock on Mackinac Island

Under newly enacted law, the legislature will have to present their completed appropriation bills to the governor by July 1. Between now and the deadline, House and Senate Appropriation Committees will hold hearings on the various aspects of the budget within their authority. They will then report their budgets to the full Appropriation Committees, followed by floor votes within both chambers. Once the House and Senate have both favorably voted on the budget bills, they will be sent to Governor Whitmer for her approval.

For more information, please click here to visit the State Budget Office’s website dedicated to the Executive Budget.

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