This week, the Michigan State Legislature voted on and approved a state budget for Fiscal Year 2024 which begins on October 1, 2023. This budget was months in the making with negotiations culminating between the Governor’s office and Senate and House leadership over the past several weeks. This, coupled with the May Consensus Revenue Estimating Conference’s assessment that state revenues are trending down, meant many of the budget priorities of the House and Senate were negotiated down in total spending, thus bringing the budget for the Fiscal Year 2024 to $81.66 billion.
Both the omnibus and school aid budget received bi-partisan support as increases were made in education, revenue sharing, and behavioral health needs, as well as funding set aside for the state’s rainy day fund and school aid savings account. More than $800 million was spent on projects throughout Michigan that include grant funding for healthcare projects, housing, public infrastructure, and workforce development. To ensure transparency over these projects, the legislature included new boilerplate language requiring state departments to post on a website the requirements of the grants and the grant legislative sponsor.
$91.1 million was appropriated for healthcare grants, $40 million for housing grants, and $234 million for public infrastructure grants. $176 million was allocated for public safety grants and $35 million for workforce development grants.
The Michigan Department of Health and Human Services had the largest departmental budget, setting a record at $33.4 billion. The department’s spending increases are attributed to rising Medicaid caseloads and actuarial soundness funding for pre-paid inpatient health plans to administer Medicaid coverage. Behavioral health programs received a large funding increase in the FY 24 budget with nearly $66 million of the state’s general fund being allocated to help with the mental health crisis.
Both the House and Senate wrapped up voting before 11 p.m. by adopting Senate Concurrent Resolution 9, which prescribes the legislative agenda for the summer as members will begin their in-district period. Per SCR 9, we can expect the House and Senate to return to Lansing July 18 – 20 and August 22 – 24. The legislature will return to a more normal legislative schedule beginning on September 5.
All budget materials for Fiscal Year 2024 can be found here.