Governor Whitmer, Legislature announce budget for Fiscal Year 2022

LANSING, MI (WKZO AM/FM) – Tuesday, Governor Gretchen Whitmer and the Michigan Legislature announced a bipartisan budget agreement as the legislature moves budget bills for Fiscal Year 2022, which begins on October 1.

She plans to sign the bipartisan budget into law before the end of the month.

According to Whitmer, the budget provides strong investments for the state’s economy, enhances childcare for Michigan’s working families, invests in education and the skills needed for Michigan’s workforce, protects health, prioritizes cleaning up water and the environment, and rebuilds infrastructure and crumbling bridges.

The General Fund budget will total $11.8 billion, and when combined with the already signed School Aid Budget of $17.0 billion ($2 billion from federal sources), the full budget will provide $26.8 billion in state spending.

With federal funding and other restricted revenues included, the full budget will total just under $70 billion.

In July, Gov. Whitmer signed the School Aid budget, providing historic investments in K-12 education and increasing access to preschool.

“I am thrilled that the legislature and I were able to come together to agree on a bipartisan budget. Our collaboration is a testament to what’s possible when we work together and put our families, communities, and small businesses first,” Governor Whitmer said. “The budget will make the biggest-ever one-time deposit into our rainy day fund, repair or replace nearly 100 bridges, expand childcare to 105,000 kids at low or no-cost, replace lead service lines, permanently raise pay for direct care workers, and do so, so much more. I look forward to continuing in the spirit of collaboration to spend the billions in federal dollars we have available to us from the American Rescue Plan and the billions more we are expected to receive from the bipartisan federal infrastructure bill. When we come together, we are capable of making incredible progress and I am proud that we got this done.”

The budget will provide a series of investments to help Michigan’s economy, including lowering the costs and expanding the access of childcare for working families.

The funding plan includes:

• $108.1 million that makes 105,000 more children eligible for child care by increasing income eligibility to 185 percent of the federal poverty level through fiscal year 2023, then 160 percent ongoing in the following fiscal years.
• $13 million to waive parent copays for childcare through fiscal year 2022.
• $158 million for an ongoing 30 percent rate increase for childcare providers, with an additional $222 million for a temporary rate increase.
• $117.4 million to pay for enrollment in childcare through fiscal year 2023.
• $36.5 million over 3 years to expand the number of childcare spaces for infants and toddlers.
• $700.7 million for stabilization grants and another $100 million for startup grants for childcare providers, including technical assistance and facility improvements.
• $30 million for a one-time $1,000 bonus for childcare staff.
• $100 million for community revitalization and placemaking grants to support economic development in local communities.

The budget will also provide direct support for education and skills training to help address the skills gap and provide Michigan employers with the talent needed to move the economy forward.

Investments will include:

• $55 million for the Reconnect program to provide a tuition-free pathway to an in-demand industry certificate or associate degree for Michigan adults age 25 and older to help Michiganders get the skills they need to compete for a good-paying, in-demand job.
• $25 million for the Futures for Frontliners scholarship program that pays for frontline workers to attend local community college tuition-free.
• $40 million for the Going Pro program to expand employer-based training grants that result in industry-recognized credentials and certificates to help raise wages for workers and help employers fill job openings.
• $6 million for wraparound supports for Reconnect or Futures for Frontliners to remove barriers to degree completion.
• $8 million for pre-apprenticeship/apprenticeship training programs that will expand Michigan’s talent pool in the construction and building trades.
• $1 million for Focus: HOPE to support workforce development, youth development, and community empowerment and advocacy programs.
• Increased base funding of 1 percent for operations at universities and community colleges, with a one-time 4% increase in funds to help keep tuition costs down.

“The resources provided in this budget for Michigan Reconnect and Futures for Frontliners are vital for Michigan’s community colleges and their role in moving our state forward,” President of Lansing Community College Steve Robinson, Ph.D. said.