Gov. Whitmer’s 2022 budget gets Michigan back to work and supports our schools
Budget plan will equitably grow the economy, expand skills training, provide child care for families, rebuild infrastructure, and help small businesses
LANSING, Mich. — Gov. Gretchen Whitmer’s third executive budget was released today, centered on equitably growing the state’s economy by expanding skills training and childcare for families, providing a further down payment on rebuilding the state’s crumbling bridges and water infrastructure, and helping small businesses recover from the pandemic. State Budget Director David Massaron outlined the recommendations this morning to a joint session of the House and Senate Appropriations Committees.
The budget recommendation provides investments that will foster the success of Michigan students and teachers, improve the state’s infrastructure, address the public health crisis, protect our Great Lakes, and provide help and opportunity for families and businesses.
Today’s Executive Budget Recommendation follows a recent supplemental budget request for the current fiscal year that was sent to the Legislature on January 20, which would provide $5.6 billion in new funding for Michigan’s recovery from the pandemic. That supplemental request still requires action by the Legislature to ensure the full benefits of Gov. Whitmer’s Michigan COVID Recovery Plan are realized. It is a plan that is instrumental to the Governor’s broader economic vision to help businesses and families across the state recover as quickly as possible.
“To build Michigan’s economy back better, we must stay laser-focused on getting Michigan back to work and getting our kids back in school safely,” said Gov. Whitmer. “The budget plan I released today along with the MI COVID Recovery plan I announced last month makes the investments we need to jumpstart our economy and build a better Michigan for everyone. I am committed to working across the aisle with the legislature to ensure that we don’t waste a dime of the federal aid we have received thus far, so we can help Michigan families and small businesses get back on their feet. Let’s get to work and let’s get it done.”
“The Governor’s budget plan provides needed investments in our roads and bridges, our economy and our schools,” said State Budget Director David Massaron. “I believe this is a plan that reflects the shared values that all Michiganders support, and I look forward to working with the legislature over the next few months to ensure we finalize a budget that works for Michigan.”
The budget recommendation totals $67.1 billion and it includes a general fund total of $11.4 billion and a school aid fund total of $14.7 billion. It provides a significant amount of one-time funding made possible by the increase in federal aid and the effective job Michigan has done in managing the pandemic. The recommendation is built with an eye toward the future to ensure that the fiscal year 2023 budget is balanced as well.
Budget Recommendations for Children and Public Education
The budget recommendation calls for the largest investment in K-12 schools in history, including:
- $203 million to increase base per-pupil funding to $8,275 for districts at the minimum ($164 per-pupil increase) and $8,611 for districts at the maximum ($82 per-pupil increase), reducing the gap between the highest and lowest funded districts to $336 per pupil.
- An increase of 2 percent totaling $14.1 million for economically disadvantaged students, English language learners, special education students, and students in rural and isolated districts.
- $250 million in one-time supplemental funding to implement research-based best practices to support student academic recovery, physical and mental health, and post-secondary readiness and transition.
- $200 million one-time for declining enrollment to stabilize budgets for districts experiencing losses in fiscal year 2022.
- $120 million total to provide opportunities in 2021 and 2022 for students through summer learning, after school learning, day camps, and other activities designed to support student needs outside of the normal school schedule.
- Funding for the Education Emergency Relief Fund intended to help mitigate the impact of COVID-19 on students for use in public schools ($38.9 million) and nonpublic schools ($86.8 million).
- $32 million for the Great Start Readiness Program, raising the state payment for a full-day preschooler from $7,250 to $8,275, which is the same as the proposed K-12 base foundation allowance, for 38,000 4-year-olds statewide.
- $55 million for the Filters First program to begin statewide implementation of drinking water fixture replacements in schools to ensure that children have access to clean, safe drinking water.
- $2.9 million to address the educator shortage and provide more supports for current teachers as well as incentives to recruit former and future educators.
- A one-time increase for universities and community colleges equal to 2 percent of operations funding and an additional $70 million in one-time support upon adoption of policies related to COVID-19 testing, quarantining, and contact tracing.
“The cost and availability of high-quality childcare is a barrier to many working families and a real concern for employers across Michigan,” said Sean Welsh, PNC regional president and Talent 2025 Board co-chair. “The governor’s childcare priorities will allow more families to qualify for childcare assistance, help childcare providers keep their doors open, and allow more Michiganders to return to or remain in the workforce.”
“The pandemic has highlighted both the importance of schools to our society and our pre-existing struggles to meet students’ needs. After the experiences of the last school year, it is important that we provide safe and flexible learning opportunities that do not simply return us to pre-pandemic standards, but close the opportunity gap for learners across the state. Governor Whitmer’s budget recommendation represents much needed materials, resources, programs, infrastructure, and personnel that will empower educators to meet the diverse needs of Michigan learners,” said Michigan Teacher of the Year, Owen Bondono.
Budget Recommendations for Economic Opportunity
The budget recommendation calls for funding centered on economic recovery and opportunity, including:
- $370 million for the expansion of childcare options providing additional supports for Michigan families by temporarily increasing the income eligibility threshold from 150% to 200% and temporarily waiving out-of-pocket copays through fiscal year 2022, with a 10 percent increase in hourly rates for child-care providers.
- $120 million one-time for the Reconnect program to provide a tuition-free
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