Labor and Economic Opportunity
FOR IMMEDIATE RELEASE September 30, 2020
Tiffany Brown, Press@michigan.gov
Kurt Weiss, 517-243-3139, Weissk1@michigan.gov
Gov. Gretchen Whitmer Signs 2021 budget, new spending plan in place starting October 1
Budget provides critical funding for education, healthy families, and more
LANSING, Mich. — Gov. Gretchen Whitmer has signed her second budget into law, ensuring that Michigan has its spending plan in place prior to the start of the new fiscal year on October 1. The budget delivers on many of her signature priorities, including the Michigan Reconnect program for a tuition-free pathway for adults, funding for the Healthy Moms, Healthy Babies program to ensure women have the care they need for a healthy pregnancy, and expanding access to childcare for families.
“While this budget faced many challenges along the way amidst a global pandemic, I am pleased that we were able to come together and produce a budget that funds the programs and services that matter most to our residents ,” said Gov. Whitmer. “This has not been easy, but in the end the executive and legislative branches of government worked together to do what is expected and demanded of us and we now have a budget that will serve Michigan well.”
The budget protects schools, colleges, universities, and local governments from any state funding reductions below their original 2020 funding levels. The budget also includes new education investments focused on providing students, teachers, and adults across Michigan with needed resources, including:
“For Michigan to succeed in the global race for talent, we need effective tools that help our citizens get the skills the 21st century economy demands,” said Sandy K. Baruah, president and CEO of the Detroit Regional Chamber. “I could not be more pleased that Governor Whitmer and the Legislature have prioritized the Michigan Reconnect program in this difficult budget year. It is a proven model to help adults in the workforce achieve their next level of skill development and professional success that also strengthens the talent pipeline for employers.”
When it comes to budget priorities for the health of families across Michigan, the budget includes:
“We are incredibly grateful to Governor Whitmer and the Legislature for making investments in strategies proven to reduce racial disparities in infant and maternal outcomes,” said Dr. Renay Gagleard, Board Chair for the Michigan Council for Maternal and Child Health. "Extending coverage in the postpartum period will undoubtedly save lives. One in three pregnancy-related deaths occur in the postpartum period, and it’s a critical time for providers to identify mothers who may need help with postpartum depression or to continue treatment for a substance use disorder. This continuity of care will help ensure more babies aren’t left to start their lives without their mother.”
The 2021 budget 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. A total of $28.7 million is provided for the Going PRO program to support job training grants to businesses to support training for current and new employees in high-demand, skilled trades industries. In addition, new funding of $3 million is provided for a statewide pre-apprenticeship program with the goal of developing qualified candidates for building trades apprenticeships in the construction industry. Funding for the popular Pure Michigan campaign is set at $15 million.
“Increasing access to education beyond high school and enhancing training opportunities for high-demand careers is fundamental to achieving higher income and a healthy economy,” LEO Director Jeff Donofrio said. “We are thankful to Governor Whitmer and the Legislature for funding initiatives like Michigan Reconnect and Going PRO which provide tuition-free pathways to degree programs and help businesses fill their talent needs. These new educational and training resources, coupled with our expanded business attraction efforts will make the state’s economy more competitive and create real opportunity for Michiganders.”
The budget also provides funding for critical initiatives directed at the environment, including $5 million that draws down significantly more in federal funding for the Conservation Reserve Enhancement Program to reduce runoff of contaminants into Lake Erie and other watersheds. The budget also adds $1 million to Michigan Saves to help Michigan families make energy efficiency improvements to their homes.
“By working in collaboration we have put together a balanced budget that is good for Michigan and I am sincerely appreciative of the partnership that occurred with Senator Jim Stamas and Rep. Shane Hernandez at the appropriations level, and I’d also like to thank my staff within the budget office for their many long work days and extra hours,” said State Budget Director Chris Kolb. “In these most challenging times, we were able to join forces to invest in our state’s greatest needs by prioritizing education, public health and safety while investing in our infrastructure, businesses and the employees that work there.”
A total of $4.2 million is provided to begin implementing the pre-trial incarceration task force recommendation for crisis intervention and de-escalation training through the Michigan Coalition on Law Enforcement Standards, helping ensure law enforcement officers have the training and education they need to intervene successfully. The budget includes $7 million to increase the number of troopers within the Michigan State Police.
The budget also includes $14.3 million in broadband funding to help expand internet access across the state which is more important than ever to Michiganders relying on telework, telehealth, and virtual learning.
See below for links to the Governor's transmittal letters on HB 5396 and SB 927
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