7/1/22 - Michigan Leaders Come Up With A New Budget

Lawmakers send a $75.7 billion state budget to Gov. Whitmer for her signature.

LANSING, Mich.  (michigan.gov) — Early this morning, Governor Gretchen Whitmer, State Budget Director Chris Harkins, Senate Majority Leader Mike Shirkey, and Speaker of the House Jason Wentworth issued the following statements after reaching a deal on the State of Michigan’s Fiscal Year 2023 budget. 

Governor Whitmer Statement

“Today, I am proud to announce that the Legislature and I have reached a deal on a balanced, bipartisan state budget for Fiscal Year 2023 that does not raise taxes by a dime and is delivered on time. 

“This is our fourth collaboration on a fiscally-responsible budget delivers on the kitchen-table issues that matter and lowers costs for families struggling with inflation. I am proud that the budget will grow Michigan’s economy and workforce, make record investments in every student and classroom, protect public health and public safety, expand mental health resources, and empower working families and communities.

“Let us continue in this spirit of collaboration to invest the billions of dollars in additional revenue we still have on the table and offer real relief to families right now, especially as they face rising prices on groceries, gas, and other everyday expenses. I will work with anyone to put Michiganders first and get this done.”

State Budget Director Chris Harkins Statement

“We have a financially sound budget that responsibly invests our one-time funds. In addition to prioritizing funding for our students, schools, public health, natural resources, and communities, we are paying down debt, shoring up pensions and setting money aside for a rainy day. I am proud to have a budget that invests in both our current needs and looks toward our future as we continue to move Michigan forward.”

Senate Majority Leader Mike Shirkey Statement

“A budget is a statement of priorities, and this budget prioritizes education, safe schools, road repairs, and job training,” said Senate Majority Leader Mike Shirkey, R-Clarklake. “It also sets aside a substantial sum that Republicans are ready to return to Michiganders struggling with record-high inflation and gas prices.”

Speaker of the House Jason Wentworth Statement

“Between the looming recession and inflation hitting families hard, we absolutely had to nail this budget plan to give everyone in Michigan the support they need,” said Speaker of the House Jason Wentworth, R-Farwell. “I’m glad we were all able to take our time and work together across party lines to build a real plan and move Michigan forward. Our budget prioritizes school funding, road repairs, healthcare access, job training, and even sets aside billions for tax relief. This plan has everything Michigan families need to get ahead and stay ahead in the coming year.”

The roughly $77 billion plan includes $54.8 billion for state departments as well as a combined $22.1 billion for school aid, community colleges, and public universities.

The $19 billion school aid budget is a 12% increase over last year’s budget, though smaller than the $21.7 billion budget passed in the first year of the pandemic.                                                                                                                                                                                                                The budget includes a $450-per-pupil funding increase, or 5%. That’s more than the $435 increase Whitmer proposed in February, a reflection of a fiscal situation in Michigan that has steadily improved in recent months thanks to a post-pandemic consumer spending boom and an influx of federal COVID relief funds. The increase would cost the state $630 million and bring the basic school funding formula to $9,150 per pupil for most districts.