Advocacy News – February 10, 2022
Gov. Gretchen Whitmer’s fourth executive budget was released Wednesday. The budget recommendations for Fiscal Year 2022-23 center around increasing funding for K-12 schools, investing in free preschool and “hero pay” benefits for frontline workers, and luring large economic development projects to the state.
The state has an extra $7 billion in state revenue on the table, largely due to the federal American Rescue Plan Act (ARPA) dollars and the Coronavirus Aid, Relief and Economic Security Act (CARES) money. This amount does not include the billions more in federal infrastructure money that is expected to come the state’s way.
The Governor’s 2022-23 budget recommendation totals $74 billion. It was presented by the state’s budget director, Chris Harkins, to a joint session of the House and Senate Appropriations Committees. Some of the top line proposals include:
- $6.3 billion to improve state and local infrastructure, including roads, bridges, airports, transit and rail programs.
- $500 million for the Strategic Outreach And Attraction Reserve (SOAR) Fund, which is aimed at luring large economic development projects to the state.
- $41.5 million in funding for The Going PRO Talent Fund, which makes direct grants to employers to assist in training, developing and retaining current and newly hired employees.
- $52 million into the state’s Budget Stabilization Fund (or “Rainy Day Fund”), which is used to alleviate the impact of economic downturns on programs funded by the state.
- $88 million to for Michigan’s Unemployment Insurance (UI) system, including $75 million to upgrade the UI computer system.
- $50 million for Electric Vehicle Rebates to provide a $2,000 point-of-sale rebate for the purchase of a new electric vehicle and a $500 rebate for at-home charging equipment for a new or used electric vehicle.
- $5 million for the Pure Michigan program, which features all that Michigan has to offer from a travel and tourism perspective to a statewide and national audience.
- $18.4 billion for the K-12 budget, which includes $580 million to cover a $435 expansion in per-pupil funding (to bring the minimum amount to $9.135 per student), $2.3 billion to help recruit and retain school employees, $361 million to open 40 school-based health clinics to increase student access to mental health screenings and $72.6 million for pre-K education programs, including $56 million for the Great Start Readiness Program, which provides free preschool for income-eligible 4-year-olds.
- $500 million in one-time “hero pay” benefits for first responders and front line workers; law enforcement officers, correctional officers, firefighters, and first responders will receive a similar investment of $50 million.
- $265 million to continue pay increases for direct care workers.
- $200 million for pay increases for state employees.
The presentation of the Governor’s budget recommendation officially kicks off the appropriations process for the upcoming fiscal year. The House and Senate Appropriations Committees will now get to work and start developing budget to be sent to the Governor’s desk. The new budget goes into effect on October 1, 2023.
Although we may not agree with all of the Governor’s spending priorities, the legislative appropriations process is the avenue for voicing concerns and putting alternatives on the table. The Michigan Chamber will be spending the next few days digging through the details of the 200-page budget proposal and developing a strategy to weigh in where appropriate.
Please contact Wendy Block with questions at wblock@michamber.com.