Here's What's In Whitmer's Proposed $67.1B 2022 Budget

LANSING, MI — Education, economic recovery and public health were among priorities included in the proposed 2022 budget revealed Thursday by Michigan Gov. Gretchen Whitmer.

The proposed $67.1 billion state budget is Whitmer's third as governor and also includes an emphasis on improving Michigan's infrastructure as well as recommendations for clean energy and environmental improvements.

“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,” Whitmer said in a statement Thursday. “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 proposed budget was Whitmer's first while working with Dave Massaron, the state's new budget director. Massaron took the role over on Jan. 4 after serving as Detroit's Chief Financial Officer. He replaced Chris Kolb, who left the post to take over as the Vice President for Government Relations at the University of Michigan.

“The governor’s budget plan provides needed investments in our roads and bridges, our economy and our schools,” Massaron said. “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.”

Thursday's Executive Budget Recommendation follows a recent supplemental budget request for the current fiscal year that was sent to the Legislature on Jan. 20, which would provide $5.6 billion in new funding for Michigan’s pandemic recovery efforts.

The budget recommendation includes a general fund total of $11.4 billion and a school aid fund total of $14.7 billion. It also includes a significant amount of one-time funding in federal aid.

Here's a breakdown of what the budget entails:

Public Education Recommendations

The budget recommendation calls for the largest investment in K-12 schools in history, according to the governor's office. That recommendation includes $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.

It also includes 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.

Whitmer's recommended budget includes $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 the fiscal year 2022; and $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) also are included in the budget recommendation.

The 2022 budget recommendation includes $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.

It also includes $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; and 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.

Economic Recovery and Opportunity

The budget recommendation calls for funding centered on economic recovery and opportunity, Whitmer's administration said, including $370 million for the expansion of childcare options providing additional supports for Michigan families by temporarily increasing the income eligibility threshold from 150 percent to 200 percent and temporarily waiving out-of-pocket copays through the fiscal year 2022, with a 10 percent increase in hourly rates for child-care providers.

Whitmer's budget includes $120 million one-time for the Reconnect program to provide a tuition-free pathway to an in-demand industry certificate or associate degree for Michigan adults age 25 and older; $60 million one-time for the Futures for Frontliners program to fully fund the first cohort of essential workers and expand the program to include those newly unemployed from November 2020 to January 2021 in our hardest-hit business sectors.

The proposed budget lays out a $15 million one-time increase for the Going Pro program to expand employer-based training grants that result in industry-recognized credentials and certificates. It also includes $3 million for pre-apprenticeship/apprenticeship programs that will expand Michigan’s talent pool in the construction and building trades and $25 million one-time for the Mobility Futures Initiative to support a new statewide collaboration that addresses environmental sustainability, connected and autonomous vehicle deployment, economic and workforce development, and the alleviation of systemic mobility inequities in underserved communities.

Also included in the budget is $1 million one-time for Focus: HOPE to support workforce development, youth development, and community empowerment and advocacy programs.

Public Health

The budget recommendation calls for funding centered on the health of Michigan families amid the ongoing coronavirus pandemic, including spending $360 million for a direct care wage increase to permanently maintain the $2/hour wage increase for direct care workers.

Whitmer's budget aims to supplement nursing homes that lost revenue from having fewer bud occupancy during the pandemic with a $28 million one-time payment.

The budget also includes $91 million to improve access to and consistency of behavioral health for Medicaid enrollees and those served through the child welfare system; $26.5 million for the Certified Community Behavioral Health Clinics Pilot to provide integrated behavioral health services to adults in the state; and $7.4 million to expand the Infant Home Visiting program for evidence-based home visiting services to at-risk families with infants born with substance exposure.

Cross enrollment expansion and improving technology and communication tools to help enroll people needing support would also be funded by a $3.5 million payout.

Other budget line items included are $19 million for the MiChoice program expansion to provide alternatives to nursing home care by increasing slots for Medicaid Home and Community Based Waiver services.

The budget also focuses on health inequities amid the pandemic, including putting $6.7 million for the Sickle Cell Disease Initiative to expand treatment coverage to around 400 adults and increase outreach and clinical capacity supporting the estimated 4,000 Michigan residents living with sickle cell disease, which disproportionately affects Black people.

Whitmer's budget puts $8.4 million toward reducing health disparities and expand the use of community-based navigators to enhance access to health coverage, and improve screening, data sharing and interoperability of existing data systems through the Michigan Health Information Network.

The budget also makes room for putting $2.1 million toward the Race, Equity, Diversity and Inclusion Office to promote racial equity and inclusion in DHHS-administered services.

Other line items included are: $10 million one-time for the Lead Poisoning Prevention Fund to help eliminate lead poisoning in homes by injecting private capital into lead remediation efforts; $5 million one-time for a pilot program to promote pre-weatherization construction, renovation, and repair services required to make single and multi-family structures eligible for energy efficiency or weatherization programs; and $15 million one-time for state psychiatric hospital special maintenance for capital improvements at all five of Michigan’s psychiatric hospitals.

Michigan Infrastructure Improvements

When Whitmer first ran for governor, she built her campaign on improving Michigan's infrastructure. Her latest budget recommendation calls for investments in the state’s infrastructure, including $300 million for local bridge bundling to repair or replace about 120 local bridges her office said are in serious or critical condition.

The budget also includes $290 million in infrastructure grants for the MI Clean Water Plan to address sewer overflows and mitigate public health risks by removing sewage discharge to surface water and ground water and eliminate failing septic systems.

Whitmer's proposed budget also puts $40 million to fund high water level and resilient infrastructure and planning grants to local governments for projects that address issues like coastal erosion, flooding, transportation networks, urban heat and storm water management.

Following a 500 year flood in the Midland area in 2020, Whitmer's budget includes $15 million for a dam safety emergency fund for emergency response when dam owners are unwilling or unable to mitigate hazards caused by dam malfunction.

Clean Energy and the Environment

The budget recommendation calls for funding centered on the environment and clean energy focuses, including $20 million for contaminated site cleanup to support rapid response to contaminated sites that pose an immediate threat.

The State Facility Green Revolving Fund, which is a catalyst for energy efficiency and renewable energy projects at state facilities, gets $5 million the administration said will help reduce Michigan's carbon footprint.

This portion of the budget also sees $5 million going toward the purchase of propane tanks with funds provided as grants with a 50 percent match to help meet our energy needs and $5 million for the Michigan Saves Green Bank to leverage private investment in clean energy improvements.