LANSING, MI (WKZO AM/FM) — Wednesday, Governor Gretchen Whitmer signed the new state budget that will take effect on October 1, the start of the new fiscal year.
The agreed-upon budget totals at $62.7 billion, and will include support for the Michigan Reconnect program for a tuition-free pathway for adults, funding for the Healthy Moms, Healthy Babies program and expanding access to childcare for families.
“I am very pleased with the budget bills I just signed,” Governor Whitmer said during a press call Wednesday. “This was not an easy process for anyone. COVID-19 created many challenges for us this year, and those challenges made for a very unique budget development process.”
She added that COVID-19 interrupted the normal budget process this year, and that there were many “unknowns” in creating it.
Governor Whitmer signs the 2021 fiscal year state budget. (Photo courtesy of the Office of Governor Gretchen Whitmer).
“It’s not what I wanted, it’s not what my administration wanted, it’s not what the legislative leaders wanted, but it’s what we had,” Whitmer said. “And the good news is that we succeeded. We developed a budget amidst a global pandemic, amidst all these challenges, and it’s a budget that will move Michigan forward. It was robustly supported in a bipartisan way, which in this current political climate, is quite a feat.”
State Budget Director Chris Kolb was also on the call to help explain some highlights of the budget, including funding for education.
“It’s a budget that protects education funding, and makes some critical new funding in education,” Kolb said.
The budget protects schools, colleges, universities and local governments from any state funding reductions below their original 2020 funding levels. It includes $161 million in flexible per pupil spending, which has been increased under the pandemic.
Kolb also touched on some of the health items that are being funded by the budget.
“The first is the $12.6 million in the Healthy Moms, Healthy Babies program,” Kolb noted. “I’m excited that we now have funding target to ensure women are given the care they need to have a healthy pregnancy and to expand support for interventions that are proven to improve outcomes. Healthy Moms, Healthy Babies will provide needed tools across our state to reduce infant mortality rates, keep families together and provide women with vital health care coverage and access they need.”
Kolb also pointed out the $26 million budget provision to expand access to childcare for families. He said that the income limit eligibility has been increased from 130 percent to 150 percent of the Federal poverty level.
“Affordable child care is an important component in removing barriers for low-income individuals so they can seek employment, job training programs, or further their education,” Kolb said. “This investment will provide more affordable child opportunities for families throughout our state, and I’m excited because it means that nearly 6,000 additional children will now qualify with this expansion.”
The 2021 budget also includes critical funding for programs within the Department of Labor and Economic Opportunity (LEO) and the Michigan Economic Development Corporation, including $100 million for business attraction efforts.
LEO director Jeff Donofrio was also on the call, who said that certain investments will further help close the skill gap in Michigan residents. A total of $28.7 million is provided for the Going PRO program, which will support job training grants for current and new employees in skilled trades industries.
He noted that $30 million have been allocated for the Michigan Reconnect program, which offers a tuition-free pathway for adults looking to earn a post-secondary certificate or associate degree.
The idea behind that program, along with the Going PRO program, is to close the skill gap in Michigan workers.
“Both are crucial parts of the state’s goal to increase the number of working-age adults with college credentials from 49 percent today, to 60 percent by 2030, a goal first announced by the governor last year,” Donofrio said. “The skills gap poses one of the greatest threats to our economic future, and the future of so many families here in Michigan. Thousands of good-paying jobs go unfilled each year because of a lack of available talent. Without a skilled work force, families suffer, and job creators look to other states for growth.”
A full breakdown of the budget and its allocations can be viewed at this link.
