House Passes Budgets for Upcoming Fiscal Years

Liz Gullett

Jun 25, 2021

In a rare evening session, last night the House passed bills providing appropriations for the upcoming fiscal year, beginning on October 1, 2021. While they passed funding for K-12 schools and the various state departments, executive office, and legislature, they didn’t pass funding for the state’s higher education institutions and community colleges.

Under the House-passed plan, K-12 schools would receive $8,700 per pupil, which is an additional $589 per student for districts currently at the minimum foundation allowance and an additional $171 per student for schools now at the maximum guaranteed foundation allowance. The budget also provides a one-time $560 million investment into the school retirement system, with the goal of freeing up money for classrooms in future years.

The general omnibus budget, which provides funding for all state departments, the legislature, and executive office, will remain roughly the same size as the current fiscal year. The budget does provide a 2% increase in statutory revenue sharing, increased funding for public safety and dam safety.

The House budgets do not appropriate all available funding, which could be addressed at a later time. Additionally, the chamber will continue to work on funding for higher education and community colleges. The House, Senate, and Governor Whitmer will continue to negotiate on the budget for the upcoming fiscal year. It remains to be seen if they will complete all budgets prior to the statutory deadline of July 1.

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