Great Lakes Wire

To free up money to address the current COVID-19 crisis, the Michigan Legislature worked with Gov. Gretchen Whitmer to cut approximately $80 million in spending from the state general fund.

Lawmakers originally budgeted the $80 million for special projects, according to BridgeMI.com. In addition to the financial cuts, Whitmer suspended state hiring and restricted any non-essential spending at the department level. Whitmer said the measures were necessary given the severe fiscal challenges the state government now faces.

With the potential of a budget crunch that could continue long after health concerns related to the coronavirus have calmed, there may be further spending cuts in the future, according to the publication.

The health crisis turned into an economic crash, with soaring unemployment as businesses reduced staffing levels in desperate attempts to stay afloat. As the economy slows, so will the revenues the state governments receive. 

“We’ve got to be really conservative right now,” Whitmer said, according to the BridgeMI.com.

The Michigan Department of Health and Human Services reported 29,263 confirmed cases and 2,093 deaths as of April 16. 

“We know that the toll COVID-19 is going to take on our state economy and on our ability to meet the needs of people is going to be real and it’s going to be felt in the budget,” Whitmer said, BridgeMI.com reported.

Among some of the projects that were vetoed included items originally agreed to by Whitmer and the Legislature before the first cases of coronavirus emerged in Michigan, the outlet reported.

They included $1 million for a bridge to Ferrysburg, $2 million for the Detroit Zoo, $1 million for the North American International Auto Show and $500,000 for a Detroit Symphony Orchestra elevator, the publication reported. 

“Priorities from both sides were included in the bill, but the world has changed since those negotiations, and we must react and change along with that,” Whitmer said, the publication reported.