Legislature Approves of Plan Dealing with Budget Shortfall

Liz Gullett

Jul 24, 2020

This week, the legislature approved of two bills resolving the $2.2 billion budget deficit for the current fiscal year and the Senate Appropriations Committee approved of an executive order reducing current-year spending. The plan utilizes $936 million in spending cuts and hiring freezes and most state agencies will see reductions, including the executive and legislative budgets.

The plan uses $350 million from the Budget Stabilization Fund and directs federal funds to education and vital services that were hit hardest by the cost of COVID-19, including:

- $512 million for schools
- $200 million for universities and community colleges
- $150 million to local governments
- $53 million for $500 in hazard pay to teachers

The two bills will be sent to Governor Whitmer for final approval.

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