Advocacy News – Feb. 10, 2023
This week, Gov. Whitmer proposed her budget recommendation for fiscal year 2024, which is the annual starting point for the administration and state Legislature to begin their budget negotiations for the upcoming year. As outlined in Michigan statute, a state budget must be signed into law by Oct. 1 – the start of the state’s new fiscal year. The Michigan Chamber monitors proposals and developments closely and plays an active role in helping inform legislators and executive departments of the programs and investments that can best support or most impact our members. We will keep you apprised throughout the process.
Some Fast Facts
- The governor’s plan totals $79.4 billion, the largest proposed budget in Michigan history.
- It includes plans to use up almost all the state’s one-time surplus of $9 billion. Should the governor’s plan pass as introduced, just $250 million would be left on the balance sheet.
Some Highlights
Of the items proposed in the governor’s recommendation, the following may be of most interest to Michigan businesses and employees:
- $244 million for Universal Pre-K covering all four-year-olds. The governor estimates this will impact 6,300 students across the state and eliminate the waiting list. Additionally, recognizing there may be a burden on providers, she also proposed including Early Childhood Education Workforce support of $50 million.
- $55 million for the state’s Going PRO Talent Fund, which makes direct grants to employers to assist in training, developing and retaining current and newly hired employees. We commend the governor for her proposed boost of the program with a one-time expansion of $35 million with American Rescue Plan (ARP) funding.
- $20 million to create the Employer Led Collaboratives program. The goal of the program is to allow groups of businesses to come together to solve a common or shared workforce problem and create solutions to fill identified talent gaps through training activities.
- $140 million investment into Michigan Reconnect, a last-dollar scholarship program that pays for in-district community college tuition-free. The governor is proposing to temporarily lower the eligible age from 25 to 21 through 2026. This is proposed as a short-term expansion with federal American Rescue Plan (ARP) funding.
- $135 million for a Main Street Initiative to support starting, growing and expanding small and micro businesses.
- $15 million dedicated to Pure Michigan campaign to continue supporting the tourism industry in Michigan.
- $100 million to remediate and redevelop contaminated sites and expand air pollution controls in historically disadvantaged and underrepresented communities.
- $40 million to create renewable ready communities and provide grants to local communities for the creation of renewable energy facilities at a regional scale.
- $15 million to create a critical mineral recycling research hub to conduct research into recycling processes for minerals essential to the modern electronic and industrial economy.
- $10.4 million for orphan oil and gas well remediation to continue efforts to seal and remediate abandoned oil and gas wells, and adjacent areas, throughout the state. This program is supported by federal Infrastructure Investment and Jobs Act funding.
The governor also proposed an ongoing funding source for economic development initiatives through the Strategic Outreach Attraction and Reserve Fund (SOAR) through excess capture of the Corporate Income Tax. This capture would dedicate the first $50 million to Housing and Community Development, the next $50 million to Revitalization and Placemaking and the final $500 million to the SOAR fund for 10 years.
There are countless more items in the 600+ page budget proposal. Although we may not agree with all 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 and developing a strategy to weigh in where needed.
For questions or more information regarding the governor’s proposed budget, please contact Becky Burtka at bburtka@michamber.com.