Breakdown of Michigan’s FY 2021-2022 Budget

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:

  1. An additional $896 million increase in Medicaid spending to accommodate for the rising caseloads due to COVID-19
  2. $994 million for Healthy Michigan
  3. The K-12 School Aid fund will see no budget cuts, instead, they will receive a $65 per pupil funding increase
  4. $28.7 million to the Going Pro program which helps provide employers with resources to help train employees
  5. $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
  6. 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

Education

General Government

Department of Health and Human Services

Higher Education

Department of Agriculture and Rural Development

Judiciary

Licensing and Regulatory Affairs

Department of Military and Veterans Affairs

Department of Natural Resources

Department of Transportation

If interested, you can visit the Michigan Senate Fiscal Agency for more in depth information.


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