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Senate Passes Budgets for Upcoming Fiscal Year

May 06, 2016

This week, the Senate passed both omnibus budgets providing funding for the upcoming 2016-2017 Fiscal Year.  The legislature will continue their budget work throughout this month with the goal of having the budget finalized by mid-June.  The budget for K-12 schools, community colleges, and universities totals $16.1 billion, highlights of the budget are below:

K-12 Schools

  • $150 million increase to the foundation allowance and an additional $300 per-pupil funding for districts that consolidate
  • $10.1 million to provide additional resources to the City of Flint, including Early on and Great Start Readiness Programs
  • $5 million to reimburse nonpublic schools for the cost of complying with state mandates

Community Colleges

  • An increase of 2.4% for operations using the 2016 Performance Indicator Review Task Force recommendations
  • Requirement of community colleges to publicly post on their website their annual budget, collective bargaining agreements, health care plans, audits and financial reports, among other items

Higher Education

  • Across the board increase of 4.4% to operations, except for Eastern Michigan University and Oakland University who exceed tuition restraint levels in the current fiscal year
  • A $50.5 million increase to the Tuition Incentive Program
  • Require universities to post financial and other data on their website
  • Tuition restraint of 4.8% and universities who exceed that cap will not be eligible for funding of Capitol Outlay projects in the 2017-18 and 2018-19 Fiscal Years
  • An intent statement that General Fund dollars be allocated to universities who incur costs from Indian Tuition Waiver program

The budget providing appropriations for state departments totals $38.77 billion.  Highlights are below:

  • Closure of two state correctional facilities for a savings of $46,972,200
  • $1,000 per school building to reimburse schools that test for lead in the water
  • An additional two full time employees to help with the expected increase to the number of participants in the Early/Middle College program
  • Additional funding to draw down all federal match dollars for the Drinking Water Revolving Loan Fund, which provides low interest loans for municipalities to improve water infrastructure
  • $5.4 million onetime appropriation to aide with the Flint Declaration of Emergency
  • $700,000 for the Attorney General in handling the United States Supreme Court decision on the retroactivity of juvenile life without parole sentences
  • A 3.5% overall increase to the legislature
  • A $1 million increase to the 21st Century Jobs Trust Fund
  • $5 million to increase cyber security protections across all State IT systems
  • An increase of 3.9% to constitutional revenue sharing
  • 2% increase for the Healthy Michigan Plan
  • $800,00 increase to the Michigan Indigent Defense Commission
  • $300,000 to increase the Michigan State Police trooper force by 100

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