Proposed Budget Highlights
The governor noted that in recent months the legislature has appropriated federal COVID-19 relief funds to support health systems, encourage economic development, and provide critical resources that put Michiganders first. In addition, the governor said she is recommending a fiscal 2022 supplemental budget to complement her budget recommendation for fiscal 2023. For fiscal 2023, the governor’s priorities are focused on putting money back into the pockets of families; putting students and teachers first; continuing to improve the state’s roads and infrastructure; driving economic and community development; establishing clean and sustainable environments; keeping families healthy; and promoting secure and safe communities. Specific recommendations include:
Putting Money Back in Pockets
- Rolls back Michigan’s tax on retirement income over four years
- Increases the state’s earned income tax credit from 6 percent to 20 percent of the federal credit
Putting Students First
- Provides the largest state funding increase for K-12 education in more than 20 years
- Increases base per-pupil funding by 5 percent
- Provides additional support and resources for economically disadvantaged students; special education students; career and technical education; English language learners; intermediate school district operation; rural and isolated districts; early childhood interventions; and free preschool for income-eligible four-year-olds
- Prioritizes teacher retention and recruitment including retention bonuses, teacher mentoring programs, regional innovation grants, the creation of a Michigan Future Educator Fellowship, and stipends for student teachers
- Focuses on the mental health and well-being of students including funding to support programs to help students manage stress, expand health clinics and mental health screenings, hire more mental health professionals, and invest in school safety grants
- Provides a 5 percent increase in one-time funding, on top of a 5 percent increase in ongoing funding, for public universities and community colleges
Road, Bridge, and Infrastructure Improvement
- Provides a $1.1 billion increase including $578 million from the federal Infrastructure Investment and Jobs Act (IIJA) and $481 million in state support
- Includes $279.9 million for one-time general fund investments in areas such as road improvements, resiliency to future flooding events, improving rail crossings, and replacing the state’s aviation weather stations
Workforce and Economic Development
- Focuses on efforts to retain current workers; provide opportunities for people to develop skills and gain experience; address employment barriers; and build new economic partnerships to drive economic development, attract large projects, and create new jobs
- Funding includes a $500 million deposit into the Strategic Outreach and Reserve Fund; $50 million for electric vehicle rebates; $40 million to aid communities that have experienced significant economic impacts; and $500 million in hero pay for frontline workers.
Clean Water and Environment
- Continues a commitment to ensure clean drinking water for every resident with investments targeting home plumbing grants and lead service line replacement
- Prioritizes the clean-up of contaminated sites across the state
Healthy Families and Communities
- Investments focused on improving access to dental benefits; ensuring access to behavioral health services; enhancing support for children in foster care; improving the financial health of families with young children; investing in public health preparedness and response; and reducing racial and economic disparities in the healthcare system
Safe Communities
- Provides increased funding for first responders and supports the hiring of 50 new state police troopers
- Recommends an ongoing 5 percent increase in revenue sharing payments to counties, cities, villages & townships, and a one-time increase of 5 percent
- Supports programs aimed at victim advocacy, fraud detection, price gouging, and better case management
- Expands cybersecurity initiatives