Proposed Budget Highlights
The governor’s recommended budget reflects her priorities of lowering costs, cutting red tape, reducing crime, powering economic development, ensuring every child has a high-quality education, and building a more fair, equitable Michigan. The governor noted the budget proposal reflects a return to normal and that over the last few years the state has harnessed federal stimulus funds to make strategic investments that will yield long-term results; passed a balanced budget on time every year; paid down more than $21 billion in debt; and built up a record balance in the school and state rainy day funds of nearly $2.5 billion. Key budget highlights include:
Balancing Michigan’s Budget and Cutting Red Tape
- Pays off a “mortgage” early (certain Michigan Public School Employees’ Retirement System liabilities), freeing up $670 million that can be invested into classrooms to help children learn.
- $100 million deposit into the Budget Stabilization Fund, which will bring the grand total in the rainy day fund to more than $2.2 billion by the end of fiscal 2025.
- $10 million deposit into the Disaster and Emergency Contingency Fund to support immediate response and recovery activities in the event of a disaster or emergency.
- $4.4 million to improve turnaround time and public outreach for environmental permitting.
- $4.8 million to increase childcare facility inspections.
- $500,000 to establish a hazard mitigation assistance program to help local governments implement projects that reduce natural disaster risks.
A Better, More Affordable Education
- K-12 Education: $370 million to support school operations through a 2.5 percent increase in base per-pupil funding; $300 million to continue historic investments for student mental health and school safety needs; $251.2 million to help students reach their full academic potential, including continuation of payments for literacy grants and literacy coaches; $200 million to continue providing universally-free breakfast and lunch to Michigan’s 1.4 million public school students; $200 million for tutoring through the MI Kids Back on Track program; $175 million in recognition of the crucial role high-quality teachers play in the success of their students; $159 million for continued expansion of free pre-K to every 4-year-old in Michigan; $127 million to continue expanded support for special education students; $125 million to provide a 5 percent increase in funding to support academically at-risk students, English language learners, career and technical education students, and students in rural school districts; $125 million to continue reimbursements to districts for transportation costs; and $45 million for additional supports for vocational education and career and technical education.
- Higher Education and Workforce Development: A 2.5 percent ongoing increase for university and community college operations to support higher education learning and to advance the governor’s goal of 60 percent of working adults earning a degree or skills certificate by 2030; $30 million investment to increase funding for the Michigan Achievement Scholarship; $62 million to continue Michigan Reconnect, providing a tuition-free pathway to adult learners 25 and older; $20 million increase in the Tuition Incentive Program; and $14 million for the North American Indian Tuition Waiver.
Lowering Costs
- $37.5 million to create the Caring for MI Family Tax Credit.
- $25 million for the MI Vehicle Rebate.
- $500,000 to continue the federal EBT summer food benefit program.
Making it in Michigan
- Economic Development: $500 million in continued investment in the Strategic Outreach Attraction Reserve fund; $100 million for a research and development tax credit; $60 million to establish an Innovation Fund to invest in scalable startups; $80 million to clean up contaminated sites; $25 million for the Build Ready Sites program to identify and prepare sites in Michigan for future development or redevelopment; $20 million to build off the iconic Pure Michigan campaign; $20 million for business attraction and community revitalization; $20 million to increase funding for Going Pro to further expand employer-based training; $20 million to provide specialized economic assistance to businesses locating to or expanding in Michigan; $5 million one-time and $11.1 million ongoing for the Arts and Cultural Program; $4 million for global talent and retention; and $2.5 million for the Office of Rural Prosperity.
- Rebuilding Our Infrastructure: $700 million to authorize the final tranche of the Rebuilding Michigan Plan to fix the state’s roads; $247.6 million to improve state and local roads, highways, and bridges across the state; $150 million to support local bridge and culvert improvements; $75 million to support federal transit capital grants, marine passenger services, rail operations and transit capital matching funds; $40 million to provide loans and grants to local communities; $30 million in grant assistance for local transit agencies; and $17.1 million to reinvest in state parks.
Reducing Crime and Keeping Michigan Healthy
- Public Safety: $11 million in statutory revenue sharing (2 percent one-time) dedicated specifically for public safety, including employee recruitment, retention, training, and equipment for first responders; hire and train 120 Michigan State Police troopers, and $5.5 million to support salary and equipment costs; $5 million to establish Training, Recruitment and Retention Grants to support local law enforcement agencies; $5.5 million for community violence intervention services to reduce gun violence and save lives; $10 million for lifecycle upgrades to the state’s safety communication system; $11.9 million to continue implementing improvements based on recommendations of the Task Force on Juvenile Justice Reform; $6.3 million for various investments to increase offender success; and $1.4 million to protect the State Capitol.
- Public Health: $193.3 million to establish new Certified Community Behavioral Health Clinics sites across the state; $15.7 million in funding to continue the Healthy Moms, Healthy Babies program; $46 million for changes to the Family Independence Program; $24 million to provide new funds to communities that identify innovative approaches to support expectant parents and newborns; $1.8 million to ensure children have access to health care through MIChild; $15 million for the Michigan Energy Assistance Program; $5 million to help low-income households weatherize and improve the energy efficiency of their homes; $7.3 million to ensure individuals experiencing behavioral health crises have access to the Michigan Crisis and Access Line 24 hours a day, seven days a week; $5 million for smoking cessation and tobacco prevention; $1.5 million to increase the clothing and holiday allowances for children in foster care; and $500,000 for technical assistance and equipment to ensure the water is safe to drink in child care centers.
A Fairer and More Equitable Michigan
- $35 million to implement recommendations of the Racial Disparities Taskforce.
- $1.5 million to fund grants to nonprofit organizations to reduce veteran homelessness.
- $5 million to continue the MI Contracting program to assist small and disadvantaged businesses.
- $3 million to create the Secure Retirement program, a state-managed retirement plan marketplace.
- $2.4 million to make state government more accessible by ensuring information and materials are provided in the languages spoken by Michigan residents.
- $800,000 for state certification, credentialing, and endorsement of approximately 1,000 interpreters serving deaf, deafblind, and hard of hearing community.