LANSING, Mich. — The Michigan Legislature on Wednesday finalized a fiscal year 2021 budget plan that balances the state’s deficit and increases investments in important priorities like K-12 education and public safety.
“When the coronavirus made its way to Michigan, it brought with it many challenges that have critically affected our state budget,” said Sen. Ken Horn, R-Frankenmuth. “Responsible management of state resources over the past decade, including building up our rainy day fund, prepared us for this difficult year. With this budget, we were able to put dollars where they are most needed to help preserve funding for schools and other critical functions of government without raising taxes.”
Horn commended the budget for its dedication to the state’s economy and getting people back to work.
House Bill 5396 includes $26 million for the Going Pro program to help train employees, and $30 million for Michigan Reconnect to help people complete an associate degree or skills certificate. Horn was instrumental in the creation of both programs as the lead sponsor and worked diligently with employers across the state to create programs that assisted workers and employers alike.
“In my role chairing the Economic and Small Business Development Committee, I’ve joined many in discovering that the greatest challenge facing Michigan is a shortage of talented people,” Horn said. “Companies across the state are begging for skilled, qualified workers and the Michigan Reconnect and Going Pro Talent programs will make those paths available.
“In addition to securing funding for Going Pro, my other top priority was restoring the Pure Michigan tourism campaign,” Horn added. “The modest $15 million investment included in this budget is vital to promoting one of our state’s top industries. The travel and tourism industry is going to be hit hardest by the coronavirus and it’s important that we let people know that our state is open for business. Your local restaurant is going to directly benefit from Pure Michigan.”
The education budget, Senate Bill 927, contains a $65 per student increase in state aid payments for all schools in addition to restoring the $175 per pupil reduction made to balance the FY 2020 budget. It also includes additional funding for growing schools, student mental health support and early childhood literacy.
Other budget highlights include:
- Modest increases in local revenue sharing for communities;
- Funding for personal protective equipment to protect staff and residents in our nursing homes;
- Graduating at least 50 new state troopers to improve public safety; and
- Fully funding the 2015 plan to help fix the state’s roads.
The budget bills now head to the governor for consideration. Michigan’s 2021 fiscal year begins on Oct. 1.