Livingston Today

The Michigan economy appears to be on the upswing, as Gov. Gretchen Whitmer is taking advantage of government funding to propose a $67 billion budget.

As it stands, the proposed executive budget is the largest in state history, thanks to COVID-19 response spending and a one-time federal stimulus. The additional funding has given the state an opportunity to invest in itself.

The state of Michigan projects tax collections will drop by $505 million in 2021, which is a far cry from the original $1.7 billion that was initially expected. Also, $1 billion in tax collection growth is predicted for the upcoming year. Reasons for optimism include that tax and lottery collections are exceeding expectations early into the year, Bridge Michigan reported.

Rep. Thomas Albert | Michigan House Republicans

It's not all sunshine and roses for the governor, however, as the Republican Party has its own ideas about how taxpayer funds should be spent. The plan currently calls for a pandemic pay increase for direct care workers, the expansion of a college tuition program for frontline workers and a followup on the commitment to repair the state’s bridges and dams.

Whitmer is also committed to increasing spending on K-12 public education.

The Legislature is under the control of the Republican Party, which will voice its ideas leading up to Oct. 1, when the budget goes into play. Currently, the governor and Legislature disagree on how and when to spend $5 billion in federal funding intended for the COVID-19 pandemic.

One particular area of concern for the Republicans is efforts being made to put kids back in the classroom. Under the current budget, Whitmer is encouraging all schools to offer in-person instruction by March, but it is not required to receive school funding. House Appropriations Chair Rep. Thomas Albert (R-Lowell) does not feel the governor goes far enough in encouraging in-person learning.

"We must remember that state tax revenues are declining sharply; our finances are propped up by artificial and temporary federal COVID relief," Albert said, according to Bridge Michigan. "It’s not sustainable. The state budget won’t be truly healthy until Michiganders can get back to work. Families and job providers have had to tighten their budgets during this pandemic; this is no time to go on a spending spree with taxpayer dollars."

Some of the highlights proposed in the budget include the extension of a $2-per-hour pandemic pay raise for state-subsidized health care workers through October 2022.

”These heroes have been working tirelessly amid a grave public health crisis, and they deserve to be compensated for their dedication,” Whitmer said, according to Bridge Michigan.

A total of $77 million has been set aside for providing a path to tuition-free community college for essential workers. In addition to improving roads and bridges, $15 million is reserved for the Dam Safety Emergency Fund.

In public education, Whitmer proposes boosting spending from $82 per child to $164. There is also an additional expenditure suggested of $370 million intended to provide relief for child care payments.