Earlier today, Governor Whitmer signed House Bill 5396, the omnibus budget for the state fiscal year that starts tomorrow, October 1st.
The Senate Fiscal Agency summary of the budget agreement can be reviewed here.
The House Fiscal Agency analysis can be viewed here.
Major components of the budget deal included:
- A restoration of the August 2020 $97 million statutory revenue sharing cut. For the coming year, statutory revenue sharing will be funded at the same level as originally set for last year.
- An extension of time for communities to pay out federally funded CARES Act first responder hazard pay premiums (see below). The payroll deadline was moved out from September 30th to October 31st, based on a Municipal League request.
- A $35 million increase to local road agencies (counties and cities/villages) based upon the final implementation of the $600 million state income tax earmark as part of the 2015 road funding deal.
- $24 million was appropriated as disaster relief grants to help areas around the state that have been devastated by flooding.
- The Business Attraction & Community Revitalization Program within MEDC was increased by $20 million.
- Federal Community Development Block Grant funding was increased by $15 million.
- $5 million was appropriated in anticipation of the passage of the League-supported Senate Bill 54, which would restore the Michigan Historic Preservation Tax Credit program.
- A one-time authorization of $800,000 for blight removal grants in Redevelopment Ready Communities.
In response to the Governor’s budget signing, the Michigan Department of Treasury released the following information relative to the payroll time extension for hazard pay and a reporting deadline extension for funds received as a result of the August revenue sharing swap…
Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected].