Michigan Gov. Gretchen Whitmer signed the $62.7 billion 2021 budget into law Wednesday before the new fiscal year begins Oct. 1.
The budget focuses on skills training, education, healthcare and some lawmakers’ “pet projects.”
“While this budget faced many challenges along the way amidst a global pandemic, I am pleased that we were able to come together and produce a budget that funds the programs and services that matter most to our residents,” Whitmer said in a statement.
“This has not been easy, but in the end the executive and legislative branches of government worked together to do what is expected and demanded of us and we now have a budget that will serve Michigan well.”
The budget protects schools, colleges, universities, and local governments from any state funding cuts below 2020 funding levels. It includes:
- $161 million in flexible per-pupil spending for districts
- $30 million for the Michigan Reconnect program, which will provide a tuition-free pathway for adults to get a postsecondary certificate or associate degree.
- $14.3 million in broadband funding to help expand internet access across the state.
- $5.6 million for mental health counselors to assist children in schools across Michigan with mental health needs.
- $5 million in incentives to attract and retain first-year teachers in districts across Michigan.
“For Michigan to succeed in the global race for talent, we need effective tools that help our citizens get the skills the 21st century economy demands,” President and CEO of the Detroit Regional Chamber Sandy K. Baruah said in a statement.
Baruah called the Michigan Reconnect Program “a proven model to help adults in the workforce achieve their next level of skill development.”
Other budget funding includes:
- $135 million to extend the $2.00/hour wage increase for direct care workers
- $12.6 million for the Healthy Moms, Healthy Babies program to ensure pregnant women get care
- $26 million to expand access to childcare for families by increasing the income limit from 130% to 150% of the federal poverty level, expanding childcare services to nearly 6,000 children.
- $20 million for COVID-19 cost increases in nursing homes
- $20 million for the state’s psychiatric hospitals
Business attraction efforts will receive $100 million while $28.7 million will fund the Going PRO program to support job training grants for current and new employees in high-demand, skilled trades industries.
The Pure Michigan advertising campaign will receive $15 million, and $3 million is provided for a statewide pre-apprenticeship program for building trades and the construction industry.
“Increasing access to education beyond high school and enhancing training opportunities for high-demand careers is fundamental to achieving higher income and a healthy economy,” Labor and Economic Opportunity Director Jeff Donofrio said in a statement.
“These new educational and training resources, coupled with our expanded business attraction efforts will make the state’s economy more competitive and create real opportunity for Michiganders.”
State Budget Director Chris Kolb applauded the bipartisan effort to complete the budget.
“In these most challenging times, we were able to join forces to invest in our state’s greatest needs by prioritizing education, public health and safety while investing in our infrastructure, businesses and the employees that work there,” Kolb said in a statement.
Senate Majority Leader Mike Shirkey, R-Clarklake, said they marked priorities and made hard decisions in a challenging budget year.
“Much like your own household budget, our state’s budget was hit hard by COVID-19. Working together, we did what Michigan families do during hard times: we identified our priorities and made tough decisions.”
