Going into this budget season, when we were crunching the numbers this spring, our economic outlook was bleak. Due to COVID-19, our state was looking like it would face a cut of $3 billion from our $10 billion General Fund budget. However, due to the resilience of Michiganders across our state, masking up and taking on the responsibility of social distancing, we avoided having to make those devastating cuts.
Michigan will not only be coming back faster than states who did not take the same COVID-19 precautions, we’ll be doing so without making widespread cuts to local communities or critical services Michiganders depend on. Michigan currently ranks near the top of the country in economic recovery with the state economy operating at 87% of where we were pre-COVID and, because of that, we were able to put forward a budget that prioritizes education, health, and our communities.
But we aren’t out of the woods yet. We are still in the middle of a deadly pandemic and will continue to face challenges because of it. It is still absolutely critical that the federal government pass another COVID-19 aid package. This is a national crisis that requires a national response.
A few big takeaways from this budget:
- An additional $896 million increase in Medicaid spending to accommodate for the rising caseloads due to COVID-19
- $994 million for Healthy Michigan
- The K-12 School Aid fund will see no budget cuts, instead, they will receive a $65 per pupil funding increase
- $28.7 million to the Going Pro program which helps provide employers with resources to help train employees
- $30 million to Michigan Reconnect, an economic-growth/workforce development program that would provide a tuition-free pathway to an in-demand industry certificate or associate degree for Michigan adults
- Healthy Moms Healthy Babies will receive $12.6 million to provide support to expecting mothers
More details and additional highlights of the FY 2021 Budget are below:
School Aid Fund
- Foundation allowance – Maintains FY 20 level but adds one-time payment $95 million for $65 per pupil
- At-Risk, GSRP, bilingual education – Maintains level funding
- Increasing enrollment – $66 million for growing districts that have a current year count that will exceed the 75-25 blend
- School mental health grants – Increases funding by $5.6 million to total of $35.6 million
- Literacy coaches – Increases funding by $3 million to total of $4 million for literacy training for coaches, principals and teachers
- Michigan Education Corps – $2.8 million for PreK and K3 Reading Corps, and Math Corps
- Teacher retention stipend – $5 million for first year teachers
- Michigan Virtual University, Advanced Placement reimbursements, partnership districts – all received increased funding
- School meal debt forgiveness – $1 million to districts that have forgiven all outstanding debt
- 10 Cents a Meal – $2 million provided statewide
- Miscellaneous – Funding provided for Imagine Learning, Algebra Nation, Teach for America, Michigan Fitness Foundation, Digital Literacy, MITES, Conductive Learning Center, Boys and Girls Club, Attendance Recovery, Detroit Public TV, Orton Gillingham Dyslexia tool, Chaldean Community Foundation, Women in Technology and virtual learning study
Education
- Child care assistance – increase income entry threshold from 130% to 150% of federal poverty level
- State Aid to Libraries – $1 million increase for a total of $13.1 million
- TEACH Michigan – Provides scholarships to fund higher education for child care worker
General Government
- Going Pro – $27.9 million restored funding for employer-based training grants
- Pure Michigan – $25 million restored funding for state and tourism promotion
- Michigan Reconnect – $30 million to establish this program to provide community college tuition to eligible individuals
- Centers for Independent Living – $15.5 million for grants to assist those in need to perform everyday activities
- DTMB Broadband Grant program – $14.3 million to expand broadband to unserved areas of the state
- Treasury COVID hazard pay for teachers – $53 million total providing up to $500 per teacher
Department of Health and Human Services
- Child Advocacy Centers – $999,000 increase for these centers providing services for child victims of sexual assault and other forms of abuse
- Youth in Transition – these programs provide homeless and runaway youth services
- Adoptive Family Support Network – $250,000 for this program that provides peer coaching for adoptive parents
- Kinship Advisory Council – $200,000 for this council is to identify the needs of kinship caregivers, advocate for reforms to help them and the children they care for, and prevent child abuse and neglect by giving them the tools to navigate the child welfare system and gain a clearer understanding on how to provide the best environment for children in their care
- FIP clothing allowance – $6.2 million to children of families receiving cash assistance to purchase clothes for school
- “Healthy Homes” – $7.4 million GF and $18.1 million federal funds for this program that provides funding for lead abatement services
- PFAS & emerging public health threats – $4.75 million maintained funding to provide grants to local public health departments for PFAS response efforts
- Dental homes – $1.55 million to public health departments who partner with nonprofit dental providers to connect low-income individuals to consistent dental care (AKA “a dental home)
- Coverage of mental health services for certain beneficiaries covered under Children’s Special Health Care services – allows the program to now fund mental health services that result from a child’s qualifying condition (this was not an option before)
- New senior call check pilot program – $40,000 for new program so seniors can receive daily calls checking on their well-being
- Immunization Awareness – $740,000 in continued funding for a media campaign to boost vaccination rates (this is particularly important, as immunization rates are significantly down right now because of COVID)
- First Responders Mental Health Grant – $2.5 million for services for first responders with PTSD
- Autism Train the Trainer grant – $244,800 for this pilot that trains school employees on ABA (the type of therapy used for autistic children) and research-based interventions
- Kids food basket – $250,000 for this group that distributes food to low-income children
- Nursing homes obtain necessary PPE
Higher Education
- Indian Tuition Waiver – $886,400 increase for a total of $10.9 million
- Tuition Incentive program – $4.5 million increase for a total of $64.3 million for Medicaid-eligible student funding
- Tuition Grant program – $4 million increase for a total of $38 million for needs-based tuition assistance at independent colleges and universities
Department of Agriculture and Rural Development
- Conservation Reserve Enhancement Program – $5 million funding restored to address concerns specific to water quality and wildlife habitat
- Double Up Food Bucks/Fair Food Network – $1 million to increase purchasing power of those using SNAP
- County Fairs, Shows and Exhibitions Grant program – $500,000 for grants to counties to put on these events
Judiciary
- Problem solving courts – $600,000 increase for courts to address drug addiction, mental health treatment and veterans’ issues
Licensing and Regulatory Affairs
- Michigan Saves – $1 million for renewable energy and energy efficiency improvement loans
Department of Military and Veterans Affairs
- County veterans service offices – Maintains funding to help veterans get connected to benefits and services
- New veterans homes – $1.2 million for ongoing operations at Chesterfield Township and Grand Rapids homes
Department of Natural Resources
- Milliken Visitors Center – $2.5 million for new visitors center of Mackinac Island
- Michigan Conservation Corps – $934,400 for summer employment program for at-risk youth and returning veterans
- Dam Management – $350,000 funding maintained
- Local marine patrol grants – $1.75 million to mitigate high water impacts on local infrastructure
Department of Transportation
- State Trunkline Road and Bridge Construction – $1.3 billion nearly flat funding
- Rail operations and infrastructure – $13.1 million increase to support rail passenger service
If interested, you can visit the Michigan Senate Fiscal Agency for more in depth information.