LANSING (WWJ) – Gov. Gretchen Whitmer on Wednesday proposed a $79 billion budget for the upcoming fiscal year, a plan she says focuses on “building a brighter future” for Michigan through targeted tax relief, large investment in K-12 education, attracting and retaining talent in the state and more.
Whitmer’s fifth budget proposal comes with the state’s surplus expected to hit a record $9 billion, which would mostly be drained ahead of the new fiscal year, which starts on Oct. 1.
The budget recommendation totals $79 billion and includes a general fund total of $14.8 billion and a School Aid Fund total of $19 billion. It provides “a significant amount of one-time funding while maintaining a structural balance in future years and does not utilize one-time funds for ongoing purposes,” the governor’s office said.
Whitmer said her No. 1 concern for Michiganders is the cost of living, which is why she introduced her Lowering MI Costs plan last week.
Highlights of Whitmer’s plans to help Michiganders combat inflation include rolling back the retirement tax, which would save an estimated 500,000 households $1,000 a year, expanding the Working Families Tax Credit (formerly the Earned Income Tax Credit) and laying the groundwork for providing pre-K for all Michigan 4-year-olds.
The biggest education investments in the proposed budget include:
• $900 million deposit into a new rainy day fund for schools
• $614 million to support school operations through a 5% increase in the base per-pupil that equates to an additional $458 per student, for a total of $9,608 per pupil.
• $318 million for school safety programs
• $442.4 million to help students reach their full academic potential, including expansion of existing payments for literacy grants and literacy coaches.
• $300 million for tutoring through the MI Kids Back on Track program.
• $300 million to continue historic investments for student mental health
Other highlights of the budget include nearly $900 million in infrastructure upgrades – including $65 million for electric vehicle charging networks – nearly half a billion dollars for housing and $230 million in public safety investments.
A full breakdown of the budget proposal can be found on the state's website.
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