Advocacy News – July 1, 2022
Working in a bipartisan fashion, the Michigan Legislature and Governor agreed to and passed a balanced Fiscal Year (FY) 2022-23 state budget early Friday morning.
The $76 billion state budget includes nearly $20 billion for the State’s School Aid Fund, $15 billion in General Fund revenue and sets aside $180 million for the Budget Stabilization Fund (or “Rainy Day Fund”), brining the total of that fund to an all-time high of nearly $1.6 billion. It also pays down $2.6 billion in various state debt.
While we are still sorting through the details, highlights of the FY 2022-23 budget include:
- $55 million in funding for Going Pro Training Fund, increasing total funding by $15 million from the previous fiscal year. The Going Pro program provides training grants to employers to help them train and upskill their new and existing workforce. The Chamber had been advocating for appropriating at least $55 million to reflect demand for this program.
- $25 million in funding for the Pure Michigan tourism campaign, so the state can continue to position Michigan as a great place to live, work and play. The Michigan Chamber has been advocating for a $25 million appropriation.
- Funding to help reduce barriers to employment for Michiganders including affordable transportation and childcare, including $2.5 million for the Tri-Share Pilot Project, which allows participants to share the cost of childcare equally between the employer, an eligible employee and the State of Michigan, with coordination provided regionally by a facilitator hub. Funding for this program was a priority for the Michigan Chamber (requested at least $2.5 million).
- A bump in the per-pupil funding to $9,150 per student.
- Expanded free preschool for another 1,300 children under the Great State Readiness Program.
- A 27% increase in vocational education funding.
- $55 million in funding for Michigan Reconnect, which offers Michiganders tuition-free paths to higher education or skills training.
The negotiated budget leaves $7 billion on the balance sheet, with roughly $3.8 billion in General Fund and $3.3 billion in School Aid Fund in leftover dollars. Most of the dollars left are one-time federal stimulus dollars and ongoing funding. The next steps will be to find consensus on allocating these dollars. We expect the remainder to be primarily spent on the various tax cuts lawmakers and the Governor have been advocating for. This would include cuts to the personal income tax, gas tax, pension tax, Earned Income Tax expansion and more.
Please let Wendy Block know if you have any questions about the Fiscal Year 2023 budget at wblock@michamber.com.