LANSING, MI (WKZO AM/FM) — Governor Gretchen Whitmer and Republican state leaders are coming to an agreement on how to spend the over $3 billion dollars in federal money for Michigan’s budget.
On Monday the governor, Senate Majority Leader Mike Shirkey, and House Speaker Lee Chatfield announced that they have reached a bipartisan budget agreement, which includes adjustments to the fiscal year 2020 budget and allocation of Coronavirus Relief Fund dollars.
The basic breakdown of the federal aid means $648 million dollars will go to public health departments, $512 million will go to K-12 schools, and $150 million will go to local governments. There is also $53 million dollars going to hazard pay for teacher and $200 million being given to universities and community colleges.
The deal also designates how the state will make up for the $2.2 billion dollar revenue shortfall for the current fiscal year.
The shortfall in the general and school aid funds will be made-up through $490 million dollars in layoffs, hiring and spending freezes, and using $350 million dollars from the rainy day fund. There will also be various aid reductions to schools, universities, community colleges and local governments.
In a joint statement from Whitmer, Chatfield and Shirkey stated:
“COVID-19 has had an unprecedented impact on our state budget. In this time of crisis, it is our responsibility to come together and build a budget that reflects a bipartisan commitment to the things we value most as Michiganders. This agreement provides crucial funding for Michigan families, schools, and communities grappling with costs incurred as a result of the virus. Our collective priority is a healthy state and a healthy economy. We are committed to working together to address the remaining shortfalls in next year’s budget and we are looking to our partners in Congress for support to help maintain the essential services relied upon by our families and small businesses.”
More on the budget can be found here.
