Gov. Whitmer, Republican-led legislature agree on 2023 budget

The budget invests in students, mental health resources, public safety, and road repairs.
Michigan State Capitol building
Michigan State Capitol building(Sara Schulz, WILX | Sara Schulz, WILX)
Published: Jul. 1, 2022 at 10:03 AM EDT
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LANSING, Mich. (WILX) - Governor Gretchen Whitmer and the Republican-led legislature have reached a budget deal for the 2023 fiscal year.

The governor said in a statement that the budget does not raise taxes. But other details about what’s in it are not yet known.

According to statements from the governor and Republican lawmakers, the budget invests in students, mental health resources, public safety, and road repairs.

In a statement, Business Leaders for Michigan president and CEO Jeff Donofrio said:

“We applaud the Legislature and Governor for reaching a bipartisan budget agreement that will help Michigan win jobs and new businesses, attract talent, support our students and teachers and provide opportunities for more widely shared prosperity across our state. We are pleased to see a number of public education and talent investments that Business Leaders for Michigan prioritized in our ‘Compete to Win’ plan incorporated in the agreement.”

That plan includes per pupil funding increases for K-12 students, including additional equity funding for at-risk students and those receiving services through special education, funding to help address the state’s teacher shortage and to increase the availability of afterschool and summer programming, and investment in post-secondary scholarships and worker training

“This is what can happen when legislators work together across the aisle,” said State Rep. Angela Witwer (D-Delta Township). “I’m grateful that we were able to agree on a budget that prioritizes economic development, especially in rural communities. I’m also pleased that our efforts to secure funding for Charlotte firefighters have paid off. This budget will ensure the safety of our community and the prosperity of our state.”

Highlights of the approved state budget plan include:

  • Supporting students: The school aid budget allocates a record $19.6 billion to support education for Michigan students. After last year’s budget provided schools with equal per-pupil foundation allowance funding for the first time, the new plan increases the amount of each grant from $8,700 per student to $9,150. Increased investments will support special education, bringing the total to $1.92 billion, and additional help for at-risk students, a total of $747.5 million. Another $52 million is invested in grants to specifically address learning loss, helping kids who have fallen behind due to the pandemic. Keeping students safe remains a top priority, with an additional $168 million for school safety grants and $25 million for school resource officers. An additional $150 million provides grants to help schools hire counselors and support student mental health programs.
  • Saving taxpayer dollars: Strategic investment and targeted debt reduction will conserve resources entrusted to the state by Michigan residents. The plan preserves billions of dollars unspent that can be used to offset relief for Michigan taxpayers. Already this year, the Legislature has approved multiple bipartisan tax relief plans — a gas tax pause and two proposals for income tax relief — but the governor vetoed all three of these efforts.
  • Prioritizing fiscal responsibility: A $180 million deposit will bring the balance of the state’s “rainy-day fund” above $1.5 billion. The plan includes roughly $2.65 billion to reduce the debt of public retirement systems, including for local government employees, educators and school staff, and the Michigan State Police. This type of debt eats away at local government and school finances and is ultimately the state’s responsibility if pension obligations are not met at the local level. Paying off debt improves their finances and frees up funding for other essential services.
  • Protecting communities: On top of regular police funding, additional support for state and local law enforcement will help officers protect people throughout Michigan and form relationships in the communities they serve. The budget provides $30 million to help meet critical staffing needs in public safety departments with funding for police officer academies, scholarships, and cadet salaries. Further resources will help pay for upgrades to equipment, such as communication towers.
  • Boosting workers and local businesses: The plan provides resources for a variety of programs to help Michigan workers and businesses thrive, including a one-time $300 million investment to support community and economic development projects and a $30 million competitive grant program for business incubators that will help grow start-ups with the potential to provide good, high-demand jobs for years to come. Job training programs like the Going PRO Talent Fund and others continue to receive funding. This budget continues to make the investments needed for the agricultural industry to thrive – including a one-time $50 million investment to spur economic development.
  • Fixing roads: The plan continues to repair roads and bridges in Michigan, building upon a $4.7 billion plan approved in March, which funded roads, bridges, dams, broadband equipment, and other infrastructure. The overall Department of Transportation budget proposal includes about $6 billion – up from $5.4 billion in the current year – without raising taxes.
  • Improving government efficiency: Service to taxpayers has suffered at the unemployment office, Secretary of State, and many other areas as the Whitmer administration has kept many state employees working remotely since the pandemic started. State government works better when employees are available to interact in-person with each other and customers. To encourage efficiency, this budget will require state departments to post their policies and detail whether employees are at home or working in-person.

“Our budget prioritizes funding for students, public safety, road improvements, and other essential services,” Rep. Julie Calley (R-Portland) said. “It also keeps billions of taxpayer dollars unspent, so discussions about lowering taxes can continue in the coming days. Inflation has been hitting people hard, and tax relief will give Michiganders some breathing room.”

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