Monroe Review

The impact of COVID-19 on the Michigan economy was not as severe as experts predicted, and Gov. Gretchen Whitmer is looking to move the state forward through a proposed $67 billion state 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.

As it stands, Michigan projects tax collections will drop by $505 million in 2021, which is a far cry from the original $1.7 billion loss that was expected. Those same officials project $1 billion in tax collection growth for the upcoming year. Reasons for optimism include that tax and lottery collections are exceeding predictions 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 on 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 raising the amount spent on K-12 public education.

The Legislature remains under the control of the Republican Party, which will make its ideas known 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 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 for school funding. House Appropriations Chair Thomas Albert (R-Lowell) does not feel the governor goes far enough in promoting 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.

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. A total of $75 million has been set aside for providing a path to tuition-free community college for essential workers. In addition to repairing 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 an additional expenditure of $370 million to provide relief for child care payments.

“I'm confident that we can come out of this crisis stronger than ever before,” Whitmer told Bridge Michigan in a Zoom conference call.