This week, Governor Gretchen Whitmer released her fifth executive budget recommendation The budget recommendation totals $79 billion, and it includes a general fund total of $14.8 billion and a School Aid Fund total of $19 billion. It provides a significant amount of one-time funding while maintaining a structural balance in future years and does not utilize one-time funds for ongoing purposes.
The Governor’s budget proposes a 10% increase ($28M) in revenue sharing for cities, villages, and townships. It also creates a new public safety revenue sharing fund which will provide $19.6 million dedicated specifically for public safety, including employee recruitment, retention, training, and equipment for first responders. Additionally, significant investments are being proposed for infrastructure, housing, and community development. Highlights of the budget are outlined below.
Investing in Communities
- $1.1 billion in estimated Constitutional Revenue Sharing payments made only to cities, villages, and townships (CVTs), these payments constitute a significant portion of many municipalities’ local budgets. This represents a $61.9 million increase over the original fiscal year 2023 enacted appropriation.
- 10% increase in statutory revenue sharing for cities, villages and townships (5% ongoing and 5% one-time). This results in a $28 million increase, for a total allocation of $307.5 million.
- $36.6 million in new statutory revenue sharing (2% ongoing and 5% one-time) dedicated specifically for public safety, including employee recruitment, retention, training, and equipment for first responders.
- $19.6 million for cities, villages, and townships
- $17 million for counties
- $18.2 million to provide in-service training to licensed law enforcement officers.
- $10.8 million to establish the Office of Community Violence Intervention Services to partner with community-based organizations already working to reduce violent incidents.
- $1.9 million to implement gun violence prevention policies.
- $41.2 million for the Information Technology and Investment Fund for 10 projects to provide for the modernization of legacy information technology systems in areas such as environmental permitting and inspection, groundwater protection, occupational safety and health, and talent recruitment and retention.
- In addition, funding is included to support the expansion of state collection services for local income taxes if additional communities elect to participate.
Roads, Bridges, Transit, Electrification
- $200 million investment supporting Michigan’s Bridge Bundling program to replace or rehabilitate structurally deficient bridges across the state.
- $65 million to expand electric vehicle charging infrastructure networks and access.
- $45 million for the Michigan Clean Fleet Initiative to support local governments and businesses transitioning their vehicle fleet to electric vehicles and clean fuels.
- $226 million to remove and replace 40,000 lead service lines across the state over 10 years.
- $122.5 million to ensure the quality and safety of Michigan drinking water.
- Funding will support water filter distribution as well as faucet and plumbing replacement in communities with lead contamination in water.
- $100 million to establish an environmental justice contaminated site clean-up fund to remediate and redevelop contaminated sites in historically disadvantaged and underrepresented communities.
Energy and Environment
- $100 million for environmental justice projects) to remediate and redevelop contaminated sites and expand air pollution controls in historically disadvantaged and underrepresented communities.
- $40 million for creating renewable ready communities to provide grants to local communities for the creation of renewable energy facilities at a regional scale.
Housing and Community Development
- $212 million for residential energy efficiency improvements through federal funds via point-of-sale rebates for home appliances, water heaters and more.
- $50 million for the Housing and Community Development Program to alleviate affordable housing needs across the state and revitalization downtown areas in Michigan.
- $200 million for Regional Empowerment Grants to support the growth, development, and diversification of the state’s regional and local economies.
- $100 million for the Community Downtown Economic Development Program to provide competitive grants for community development and placemaking efforts in downtowns.
- $50 million in funding for Revitalization and Placemaking Program grants used to rehabilitate vacant, underutilized, blighted and historic structures and develop place-based infrastructure to revitalize communities.
- $135 million for the Michigan Main Street initiative to start, grow, and expand small and micro businesses.
This proposed budget builds on recent investments in communities and efforts to improve quality of life. We are excited about the opportunity to work with the administration and legislative leaders to find a budget agreement that continues to make strategic investments in communities, housing, infrastructure, and community development.
For additional resources on the Governor’s budget proposal, please click on the following links.
John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.