.Investments for Michigan small business owners, overall workforce secured within FY ’24 budget
With the holiday season right around the corner, Michiganders are eagerly searching for last-minute gifts for loved ones and great deals. Even more exciting: ‘Tis the season for shopping locally! Michigan Senate Democrats are leading the charge by encouraging residents to shop at small and local businesses, purchasing holiday items right in their own neighborhoods.
According to 2022 and 2023 data from the U.S. Census and Bureau of Labor Statistics, a 10% increase in Michigan-based sales could create 17,279 jobs and increase labor income by $700 million.
The Fiscal Year 2024 Budget, which went into effect on Oct. 1, prioritizes the needs of many groups and previously underserved populations — this time of year is a great time to highlight what is being done to boost the lives and livelihoods of small business owners.
As local businesses are the core of many communities and provide jobs to residents, their success is vital. Therefore, these policy-driven investments — as outlined below — will greatly benefit the development of the state workforce. This comes at a critical time when population growth is a major topic within the halls of the Capitol and at kitchen tables across Michigan.
The Budget Breakdown
About $50 million in sustainable, recurring funding for Revitalization and Placemaking Grants will make communities more attractive places to live and work. As a result, Michiganders will have access to better housing, parks and beautified spaces. There are also investments in the Michigan Department of Labor and Economic Opportunity (LEO) for the Jobs for Michigan Graduates program, 23+ High School Diploma Program (formerly known as Graduation Alliance program), MiSTEM Advisory Council, Tri-Share Child Care Program and Adult Literacy.
Additionally, there will be ample federal funding for Michigan Career Opportunity Academies for Community Health (MiCOACH) as well as for a Michigan Citizen Reentry Initiative (MiCRI) pilot program. This will aid in the recruitment and training of eligible communities for behavioral health careers and expand training services at a federal corrections facility and four residential reentry centers. Investments will also include the following:
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- $10 million will go towards Workforce Training: Hospitality Training Program.
- $5 million for health workforce initiatives and a nursing scholarship program.
- $15 million in federal Coronavirus State Fiscal Recovery Fund revenue for a Talent Action Teams Fast Track System.
- Workforce Development Grants for 11 specific projects.
- Skilled Trade Grant Program allocates funding for a skilled trade grant program to four skilled trade worker associations to provide workforce training programs.
Small and local business owners want to address staff shortages, increase revenue and retain top talent. Senate Democrats have listened and acted accordingly.
Providing Greater Assistance to Small Business Owners
Michigan Senate Democrats are committed to supporting small and local businesses across the state; the massive strides being taken to secure real dollars to support and grow these entrepreneurial efforts are just as important.
Here are some of the ways our #MajorityForThePeople is helping small business owners:
- Expanding the Working Families Tax Credit
The Working Families Tax Credit will help small businesses hire needed labor by increasing the state’s match of the federal Earned Income Tax Credit (EITC) from 6 percent to 30 percent. Beginning on February 13, the federal EITC will return around $553 million to local economies and small businesses — benefiting nearly 750,000 Michiganders. For more information, click here. - C-PACE
C-PACE legislation — Senate Bill 303 with Senate Bill 302 — will help small businesses by expanding the scope of projects and properties eligible for Commercial Property Assessed Clean Energy financing. - Delivery and Installation Tax
Senate Bills 63, 97, 101, and 160 will assist schools with providing funds for school security improvements, acquiring and upgrading technology and vehicles used for transportation and school maintenance, and real estate purchases. Also, this legislation will lower taxes for property used for the production and recycling of materials for the construction or maintenance of real estate. - Brownfield Redevelopment
Senate Bill 289 will expand the Transformational Brownfield Plan program to assist Michigan businesses in transforming obsolete and vacant properties into thriving mixed-use developments. - Budget Funding
Some other highlights of the FY ’24 budget include funding to support small businesses, entrepreneurs and farmers — and to expand proven, bipartisan programs to create jobs and support workers, while offering better wages and educational training opportunities.
It’s not just during the holiday season! Support for small businesses and small business owners is a long-term priority of the #MajorityForThePeople. This is what we all know: When small and local businesses are thriving, our local communities and state economy do, too.
Read more from the Michigan Senate Democrats at SenateDems.com/press.