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Gov. Whitmer and Legislature Come Together on Bipartisan Budget that Puts Michiganders First Without Raising Taxes
Budgets includes $500 million deposit into rainy day fund, grows workforce development programs, expands childcare, builds up bridges and water infrastructure
LANSING, Mich. – Governor Gretchen Whitmer celebrates bipartisan budget agreement as the legislature moves budget bills for Fiscal Year 2022, which begins on October 1. She plans to sign the bipartisan budget into law before the end of the month. The budget provides strong investments for the state’s economy, enhances childcare for Michigan’s working families, invests in education and the skills needed for Michigan’s workforce, protects our health, prioritizes cleaning up our water and environment, and rebuilds our infrastructure and crumbling bridges.
The General Fund budget will total $11.8 billion, and when combined with the already signed School Aid Budget of $17.0 billion ($2 billion from federal sources), the full budget will provide $26.8 billion in state spending. With federal funding and other restricted revenues included, the full budget will total just under $70 billion. In July, Gov. Whitmer signed the School Aid budget, providing historic investments in K-12 education and increasing access to preschool, marking the end of a 27-year journey to close the funding gap between school districts.
“I am thrilled that the legislature and I were able to come together to agree on a bipartisan budget. Our collaboration is a testament to what’s possible when we work together and put our families, communities, and small businesses first,” said Governor Whitmer. “The budget will make the biggest-ever one-time deposit into our rainy day fund, repair or replace nearly 100 bridges, expand childcare to 105,000 kids at low or no-cost, replace lead service lines, permanently raise pay for direct care workers, and do so, so much more. I look forward to continuing in the spirit of collaboration to spend the billions in federal dollars we have available to us from the American Rescue Plan and the billions more we are expected to receive from the bipartisan federal infrastructure bill. When we come together, we are capable of making incredible progress and I am proud that we got this done.”
“I am proud of this budget and the collaboration with the legislature to create a spending plan centered on transformational investments that will drive Michigan’s continued recovery,” said State Budget Director David Massaron. “This budget is going to help Michigan emerge as an even stronger state and it provides the type of investments that will foster real and lasting improvements to support Michigan’s families and businesses.”
The budget will provide a series of investments to help Michigan’s economy, including lowering the costs and expanding the access of childcare for working families. The funding plan includes:
- $108.1 million that makes 105,000 more children eligible for child care by increasing income eligibility to 185 percent of the federal poverty level through fiscal year 2023, then 160 percent ongoing in the following fiscal years.
- $13 million to waive parent copays for childcare through fiscal year 2022.
- $158 million for an ongoing 30 percent rate increase for childcare providers, with an additional $222 million for a temporary rate increase.
- $117.4 million to pay for enrollment in childcare through fiscal year 2023.
- $36.5 million over 3 years to expand the number of childcare spaces for infants and toddlers.
- $700.7 million for stabilization grants and another $100 million for startup grants for childcare providers, including technical assistance and facility improvements.
- $30 million for a one-time $1,000 bonus for childcare staff.
- $100 million for community revitalization and placemaking grants to support economic development in local communities.
“This relief is coming not a moment too soon – today’s budget will be a lifeline to the child care providers who were struggling to make ends meet even before the pandemic,” said Annemarie Valdez, President of First Steps Kent. “These funds will make it possible to stabilize not only the child care industry, but will help bring Michigan parents back into the workforce, which will in turn alleviate pressures on our economy overall. Thanks to the Governor and State legislators for negotiating a deal that puts families first.”