Updates About Budget

This week, the legislature passed a $1.3 billion supplemental package comprised of nearly $630 million for Ford Motor Company’s proposed new battery plant slated to be built in Marshall, Michigan. Additionally supplemental highlights include:

• $75 million to support health care recruitment and retention programs
• $67 million to support long term care workforce recruitment and retention programs
• $63.5 million to increase long term care reimbursement rates
• $10.8 million to establish an office of community violence intervention services
• $60 million for a competitive grant program to provide grants to community centers
• $170 million to deposit in the state’s Strategic Outreach and Attraction Reserve Fund (SOAR)
• $25 million to deposit in the Water Shutoff Prevention Fund
• $212 million for energy efficiency updates completed by homeowners/landlords

We anticipate the Governor to sign the supplemental in the coming weeks.

As previously reported in Updates from the Capitol, the Michigan Independent Citizens Redistricting Commission (MICRC) sued the state Legislature for failure to properly fund the commission on December 12, 2022. The commission expected the Legislature to appropriate around $3.1 million to the commission for Fiscal Year (FY) 2023, but a year-end supplemental was not passed prior to adjournment.

On January 18, the Senate passed two close-of-books supplemental appropriations bills to provide funding for multiple departments for FY 2021-22 and FY 2022-23. The supplementals included $1.5 million for MICRC’s expenses, about half of what the commission originally asked for in 2022.

Senate Bill 7 appropriates $146.3 million for FY 2021-22 and $1.5 million for FY 2022-23. Senate Bill 8, a School Aid supplemental, appropriates $45.6 million for FY 2021-22 and $27.9 million for FY 2022-23. Both bills have been transmitted to the House for further consideration.

On Tuesday October 4, Governor Gretchen Whitmer signed Senate Bill 844, the $1 billion supplemental appropriation bill that would mainly provide additional funding for the Strategic Outreach and Attraction Reserve (SOAR) Fund.

Items in the economic development supplemental include, among other things, $496 million for future economic investments, $350 million for site development statewide, and $27 million to secure an investment from Hemlock Semiconductor to produce chips in Michigan.

Governor Gretchen Whitmer later signed Senate Bill 842 on October 12, a supplemental appropriations bill which established the Michigan Achievement Scholarship. Beginning with the class of 2023, high school graduates are eligible for additional financial aid through the state. The scholarship program will cover 94 percent of community college students, 76 percent of public university students, and 79 percent of private college or university students. FAFSA, the Free Application for Federal Student Aid, will be used to determine need.

The Executive Office and Legislative leaders celebrated the signing of both bills. On SB 844, Senate Appropriations Chairman Jim Stamas (R-Midland) shared, “Economic development is critical to our future. As our economy faces the challenges of high inflation, labor shortages and supply-chain issues, we must help our state remain competitive for long-term, high-wage jobs.” On SB 842, Senate Appropriations Subcommittee on Universities and Community Colleges Chairwoman Senator Kim LaSata (R-Niles) said, “Expanding the eligibility of this scholarship to cover traditional classroom education, as well as hands-on training at a skilled trades academy, is a great way to both strengthen and diversify Michigan’s workforce.”