Advocacy News – June 27, 2024
What’s happening: In the early hours today, June 27, the Michigan Legislature passed the spending plan for fiscal year 2025 and sent it to Gov. Whitmer’s desk for her enactment before the beginning of the state’s fiscal year Oct. 1.
By the numbers: The FY25 budget came in just under $83 billion, higher than both the Governor and Legislature’s proposed budgets from earlier this year. While this budget consists of more record-breaking funding, it also reserves $600 million on the state’s balance sheet for additional budget or legislative endeavors in the fall.
Our thought bubble: Throughout the budget process this spring, the Michigan Chamber successfully advocated against a couple of harmful provisions in particular. These include:
• 1,200% increase in the state’s trash tax, aka the “tipping fee”.
• Costly childcare provisions and cuts to funding existing commuity-based childcare organizations.
At the same time, there were some key investments in business-friendly programs and priority areas – from contamination site clean-up for redevelopment to workforce attainable housing.
- The Going Pro Talent Fund will remain at current year funding levels of $54 million, as opposed to the requested increase to $70 million we were advocating for in conjunction with the MiWorks! Association.
- Contaminated site clean-up efforts at $80 million.
- Support of the existing Tri-Share program, a program that helps make childcare more affordable for working families, at $3.4 million in the new MiLEAP department.
- Housing support also included at $100 million in one-time General Fund spending, including $15 million for homeowner down payment assistance. Both should help with Michigan’s workforce attainable housing supply.
An important funding shift also made headlines with schools, as the Governor proposed a fiscally irresponsible $670 million shift in School Aid funding away from retirement debt and intended to invest in other areas of the school budget. The final school aid proposal took a different approach, still shifting the retirement debt payments but offering a reimbursement to schools at the cost of their retirement health care, equivalent to $598 million. This shift offset an increase in per-pupil allotment for schools, which has been scrutinized by superintendents and school groups alike.
The bottom line: The FY25 budget leaves items unresolved as it reserves hundreds of millions on the balance sheet for future use in the fall or the Legislature’s upcoming lame duck session. The Michigan Chamber will continue to monitor closely and advocate for fiscally responsible state spending with investments in workforce, childcare and employer supports that help Michigan businesses grow and thrive.
Go deeper: Learn more by reviewing the fiscal analyses for the omnibus budget and school budget. Contact Becky Burtka with any questions for more information.