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2020 State Budget Proposal

Governor Gretchen Whitmer has presented her 2020 state budget proposal, which is focused on goals around education, improving Michigan’s roads and ensuring clean drinking water for communities.

Governor Gretchen Whitmer has presented her 2020 state budget proposal, which is focused on goals around education, improving Michigan’s roads and ensuring clean drinking water for communities.

The $60.2 billion proposed budget is an increase of 3.6 percent from the current fiscal year, including additional funding planned for education priorities.

Education

  • Per-pupil spending: Whitmer’s budget plan includes the biggest increase for public education in recent years, with $507 million in additional resources to support K-12 schools. Of that, $235 million would help to increase per-pupil funding from $120 to $180 per student.

  • Special needs and at-risk students: The governor shared that her budget recognizes it costs more to provide an equitable education to special need; at-risk and career and technical education (CTE) students. Therefore, Whitmer’s budget includes $120 million for special education students, $102 million for at-risk students and $50 million for CTE students.

  • Expanding preschool opportunities: The budget includes $85 million for expansion of the Great Start Readiness Program to make preschool programs available to more students across the state.

  • Literacy: The budget includes $24.5 million to triple the number of state-funded literacy coaches in schools to improve early literacy attainment. This aligns with Whitmer’s goal of making Michigan a leader in 3rd grade literacy rates.

Fixing the Roads

  • Fuel tax: The governor’s proposed fuel tax that’s included in the budget has already received opposition. Whitmer proposes a 45-cent increase in fuel tax costs, implemented gradually at 15 cents in six-month intervals starting this October, to help fund improvements for our roads. This aligns with the governor’s goal of getting 90 percent of our roads in good or fair condition by 2030. Currently Michigan’s roads are considered a “D-.”

  • Low-income families and seniors: Whitmer shared that the fuel tax would cost the average driver about $23 per month; she has included a plan to ensure low-income families and senior citizens are not heavily impacted by the tax. The governor’s plan includes raising the Earned Income Tax Credit to ensure low-income families receive an additional $30 per month and repealing the Retirement Tax, ensuring 400,000 seniors receive about $65 per month.

Clean drinking water

  • Improving drinking water infrastructure: A new budget request includes $120 million to improve the drinking water infrastructure. Whitmer shared that funding initiatives include service line replacements, research and treatment for PFAS, loan forgiveness, watershed planning and research to optimize water distribution systems. It also includes $60 million to install hydration stations in school buildings.

In addition to these main priorities and goals shared by the governor’s administration, the 2020 budget also includes $4 million for the expansion of the Double Up Food Bucks program. Developed by the Fair Food Network and supported by nearly 30 CMF members, the program matches $1 for $1 on SNAP dollars spent on fresh produce at farmers markets, produce stands and grocery stores to ensure Michigan communities have access to healthy food. The budget increase would expand the program from 65 counties to all 83 counties in Michigan.

The governor’s budget now heads to the Legislature. Whitmer closed her budget presentation with an appeal to lawmakers, asking for their approval on her budget plan.

“I think we have an opportunity to get this done and to show the world that divided government doesn't have to look like what happens in Washington, D.C. every day because that kind of government hurts families and in an economy that is trying to grow,” Whitmer said. “It undermines confidence and compromises the future of our state. We have a chance to make Michigan a model of bipartisanship, and we must.”

Once a final version is approved by lawmakers, it will go in effect this fall, as the state’s 2020 fiscal year begins October 1.

Want more?

Check out the full budget proposal.

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