Great Lakes Wire

Around $330 million in General Fund revenue was left on Michigan’s balance sheet Wednesday as the Governor completed signing the next state budget. With multiple tax credits and a 10-year, $6 billion economic development plan still pending, top elected officials conceded that a fall supplemental spending bill is under consideration.

Inside the Detroit Fire Department’s 52 engine house, located in the city’s Chandler Park-Chalmers neighborhood, the Governor signed the $59 billion budget (SB 747) for state departments.

Speaking alongside the Governor were House Speaker Joe Tate (D-Detroit), Senate Majority Leader Winnie Brinks (D-Grand Rapids), Detroit Mayor Mike Duggan, Detroit Fire Commissioner Charles Simms, and Detroit Fire Chief James Harris.

Including the School Aid budget (HB 5506), the state’s $82.5 billion budget for FY 2025 was first passed by legislators after 4 a.m. on June 27.

On the same day, the Senate Fiscal Agency projected $319.3 million in General Fund revenue remaining on the state’s budget sheet (not including the Governor’s nearly $9.2 million in item-line vetoes Wednesday), as well as $30.8 million in the School Aid Fund. More than $1.2 billion from the General Fund contributed to one-time spending projects, and $13.61 billion financed ongoing investments to be included in next year’s budget.

Brinks told members of the press there is always conversation about a fall supplemental to deploy leftover funding.

“There’s always supplemental in conversation if needed. We’ll continue those conversations throughout the coming months, and let’s see what is required of us to keep our state moving in the right direction,” Brinks said. “It is important to define our wants and our needs, but there is always a case to be made that some things are important enough to consider this year. We’ll take a look at those, and we’ll consider those on their merit.”

Meanwhile, Republican groups have criticized the combined budget as wasteful. HB 5506 for education passed along party lines, and SB 747 for state departments received one Republican yes-vote from Sen. Ed McBroom (R-Waucedah Twp.).

“Their giant budget, which was funded by their recent income tax hike, managed to inject cash into pet projects in a few favored communities like Detroit and Lansing," said Rep. Andrew Beeler (R-Port Huron), assistant minority leader, in a press release.

Beeler said kids struggle to read and drivers can’t navigate pothole-riddled roads; “at least casino-goers in Detroit’s Greektown will have taxpayer-funded Wi-Fi.” He referenced a $300,000 General Fund grant among more than $429 million allocated for special projects or “pork” spending for Michigan's Department of Labor and Economic Opportunity (LEO).

During her remarks, Gov. Gretchen Whitmer highlighted more than $100 million being set aside in SB 747 for housing initiatives such as a housing readiness incentive grant program offering local governments up to $50,000 each.

LEO will oversee $33.4 million to construct and renovate single- and multifamily housing units while conducting energy efficiency upgrades.

Michigan's "Revitalization and Placemaking" program will receive $50 million for green spaces, walking transit projects, commercial corridors with room for local retailers, and cultural amenities.

In terms of health provisions within SB 747 deletes monthly premiums for very poor households with children insured through MiChild state program.

While discussing economic security prior to signing the budget Whitmer emphasized creating new factories and jobs within Michigan while returning supply chains home.

“This budget makes another deposit into our bipartisan economic development fund,” Whitmer said.

“For example,” she continued,“the FY ’25 budget infuses support into minority-owned businesses particularly within electric vehicles sector based out of Detroit.”

The minority-owned business support also calls surrounding “minority-owned business support” until September end of September 2029

However certain funds such innovation fund cannot be deployed until Legislature approves HB5651/52/53

Moreover Whitmer touted public safety violence prevention fund depending Legislature sending HB4605/06 desk this fall

What Else Could Be On Legislators’ Post-Budget Agenda?

Two influential backers SOAR reform General Motors Rocket Companies Gilbert Bedrock firm ongoing discussion preserving Renaissance Center future

Whitmer confirmed pushing SOAR Fund further addressing incomplete tax credit proposals floating Lansing

Article courtesy MIRS News for SBAM's Lansing Watchdog newsletter

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