LANSING, Mich. — The Michigan Legislature on Wednesday finalized a fiscal year 2021 budget plan that balances the state’s deficit and increases investments in important priorities like K-12 education and public safety.
“The coronavirus outbreak has had a significant impact on the state’s finances and it took a great deal of hard work to get our finances in order and in a safe spot for the upcoming year,” said Sen. Rick Outman, R-Six Lakes.
“This budget funds key state priorities like our schools and measures to keep nursing home residents safe and balances the deficit — all without raising taxes. We increased funding for K-12 schools and public safety and included measures to improve dam safety, help fix our roads and protect the hardworking taxpayers of our state.”
Senate Bill 927 is an education omnibus budget featuring a $65 per student increase in state aid payments for all schools in addition to restoring the $175 per pupil reduction made to balance the FY 2020 budget. It also includes an additional $66 million for growing schools, $37 million for student mental health support and $3 million more for early childhood literacy.
House Bill 5396 is a general omnibus budget that increases local revenue sharing and includes $20 million to ensure nursing homes have adequate personal protective equipment to protect staff and residents, $7 million to graduate at least 50 new state troopers and maintain trooper strength, $26 million for the Going Pro program to help train employees, and $30 million for Michigan Reconnect to help people complete an associate degree or skills certificate.
It also invests $15 million in the Pure Michigan tourism campaign, deposits $35 million in the state’s rainy day fund, and fully funds the 2015 plan to help fix the state’s roads.
“This global pandemic, along with Gov. Whitmer’s extended shutdown of our economy, left the state with a sizable budget deficit and many unknowns about the future of our state,” Outman said. “The budget we approved today makes significant investments to help those who have been most affected by the coronavirus to get back on their feet, ensures students will receive an adequate education through these difficult times, and builds up our savings to help continue battling back against the devastation left in the wake of the coronavirus.”
The budget bills now head to the governor for consideration. Michigan’s 2021 fiscal year begins on Oct. 1.