Today, State Budget Director Dave Massaron presented Governor Gretchen Whitmer’s budget recommendations for the upcoming 2021 Fiscal Year, which begins on October 1, 2021, to a joint session of the House and Senate Appropriations Committees. The budget recommendations total $67.1 billion, which includes a total of $11.4 billion General Fund appropriations and $14.7 billion total School Aid Fund spending. Unlike prior years, this budget provides a significant amount of one-time funding due to additional Federal aid in response to the ongoing COVID-19 pandemic. The budget calls for a deposit of $175 million into the state’s Budget Stabilization Fund and funding to implement criminal justice reform that was recently enacted into law.

Additional specifics within the recommendations includes:

Education and Children:

• • A one-time 2% increase for universities and community colleges
  • Additional funding upon adoption of policies related to COVID-19
    • $57.3 million for universities
    • $12.7 million for community colleges
  • $203 million increase in base foundation, providing a per pupil increase of $82-$164
  • $533.5 million for economically disadvantaged students
  • $120 million for out-of-school learning such as summer school

Infrastructure:

• • $300 million to repair or replace approximately 120 local bridges
  • $290 million for the MI Clean Water Plan
  • $20 million to mitigate advanced persistent cyber threats to the State of Michigan

Public Health:

• • A permanent $2/hour wage increase for direct care workers
  • $2.1 million to create the Race, Equity, Diversity and Inclusion Office
  • $10 million for the Lead Poisoning Prevention Fund

Clean and Sustainable Environment:

• • $40 million to provide grants to local governments for high water and resiliency needs
  • $20 million to clean up new high-risk contaminated sites
  • $5 million to support energy efficiency and renewable energy projects at state facilities

Opportunity for Families and Business:

• • $120 million for tuition-free learning for certificates or associate degrees within in-demand industries
  • $60.4 million for the Future for Frontliners Program, which provides free tuition for eligible frontline workers
  • $15 million increase to the Going Pro program

Investing in Community Services:

• • 8% increase to constitutional revenue sharing payments
  • 2% one-time statutory revenue sharing increases for counties, cities, villages, and townships
  • $5 million for first responder recruiting and training grants for local governments
  • $5 million for increased security at the Michigan State Capitol

These recommendations are another step in the process of working toward finalizing a state budget for the upcoming fiscal year. The House and Senate Appropriations Committees will continue to meet to work on the budget before sending them to the full chambers for consideration. Additionally, the legislature will work with the administration as they will need Governor Whitmer’s final approval once both chambers have passed the budget bills.

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