Article Summary –
Gov. Gretchen Whitmer signed an $81 billion budget on October 7 to fund state and school operations, after a lengthy negotiation process between the Democrat-controlled Senate and majority Republicans in the House, which included a temporary continuation budget to prevent a government shutdown. The budget prioritizes investments in infrastructure with nearly $2 billion allocated for road repairs, boosts K-12 education funding with a $10,050-per-pupil base allowance, and supports health initiatives like the Rx Kids program with $270 million for expanding cash aid to new and expectant mothers. Additionally, the budget aims to bolster economic development with investments in the Pure Michigan tourism campaign, support for rural communities, and financial assistance for businesses.
Gov. Gretchen Whitmer approved an $81 billion budget for state and school operations on Oct. 7, shortly after passing a divided Legislature. The budget faced challenges in the Legislature as Democrats and Republicans debated for months. A one-week continuation budget was passed to prevent a shutdown when no agreement was reached by Oct. 1.
After signing the budget, Whitmer acknowledged bipartisan efforts in a press release. She highlighted investments in infrastructure and economic development. Whitmer emphasized the budget’s focus on road repairs, tax cuts, healthcare, and environmental protection. “This budget fixes roads, reduces taxes, and enhances government efficiency,” Whitmer stated.
Infrastructure
Michigan’s worn roads and bridges were primary concerns during budget talks. Facing a $3.9 billion road funding deficit, the state ranks low in road conditions. The new budget allocates nearly $2 billion for road improvements over four years. Rob Coppersmith, from the Michigan Infrastructure and Transportation Association, praised the funding as transformative for Michigan’s economy.
$50 million is earmarked for the Michigan Housing and Community Development Fund to address affordable housing and downtown revitalization. Past projects funded include housing units for those with disabilities in Detroit and Grand Rapids.
K-12 Education
Before the school year, officials urged quick passage of the school aid budget. The new budget, though delayed, supports Michigan students, said Chandra Madafferi of the Michigan Education Association in a statement. Michigan schools will receive a $10,050-per-pupil allocation, a 4.6% increase, $250 million for at-risk students, and $12.5 million for English learners. The universal school meals program is fully funded, offering free meals to all public school students, a relief amid rising costs.
Health
The budget dedicates $29.8 billion for Medicaid, including mental health services, amid federal cuts. Rx Kids, providing aid to mothers and babies, received $270 million for statewide expansion. Since Jan. 2024, it has provided $16 million to 3,668 families. Dr. Mona Hanna praised the bipartisan support.
Economic Development
Funds are allocated to boost Michigan’s economy, including $17 million for the Pure Michigan tourism campaign. Support is also provided for businesses expanding in Michigan. Rural communities will benefit from $2 million each for the Office of Rural Prosperity and rural development grants.
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