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FY 2017-18 State Budget Approved, Additional Spending Added

Jun 23, 2017

This week, the House and Senate gave their approval for the two omnibus budgets providing appropriations for the upcoming 2017-2018 Fiscal Year.  Over the past few weeks there have been questions if the budgets would be completed prior to the end of June, but ultimately the legislature was successful in meeting their self-imposed deadline of the end of this month.  There were tradeoffs between the administration and the legislature to ensure completion, including additional spending in the budgets from what the House and Senate had proposed.  Changes made include:

  • $40 million for almost fifty state-wide projects, including:

    • Bridge on St. Clair Highway – $2.7 million
    • Muskegon County water treatment plant – $2.5 million
    • Demolish the former Detroit House of Corrections – $1.5 million
    • Removing the Grand Rapids Dam – $1.5 million
  • Only five prisons will see housing unit closures, as opposed to all twenty-nine receiving reduced funding as the legislature had proposed
  • An additional $11 million for per-pupil funding
  • $70 million for improvements to the Capitol building, but not a new visitor’s center
  • A wage increase for direct care workers was restored
  • Restored funding for the Michigan Virtual University
  • Appropriating funds to increase staff at the Department of Health and Humans Services, something Governor Rick Snyder called for

The general omnibus budget totals $39.9 billion in spending, while the education omnibus budget comes in at $16.61 billion.  Highlights include:

  • An additional $6.2 million in revenue sharing
  • $1 million to fund an online career high school pilot
  • $1.3 million for the Lead and Copper Rule Program
  • $5 million for indigent defense county plans
  • 3% increase for K-12 schools
  • A foundation allowance increase of $60 per-pupil
  • $200 million for unfunded liabilities in the Michigan Public School Employees Retirement System
  • Requirement for a public hearing before a school district decides to begin prior to Labor Day
  • 2.9% increase for public universities
  • 0.9% increase for community colleges

The budgets will be sent to Governor Snyder for final approval.

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