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New State Budget Now in Effect: Focusing on Working Families and the Economy

Governor Gretchen Whitmer has signed a $70 billion budget into law for the 2022 fiscal year.

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Michigan State Capitol in the evening.

Governor Gretchen Whitmer has signed a $70 billion budget into law for the 2022 fiscal year. The budget, which went into effect on Friday, includes an emphasis on families and boosting the state’s economy.

“This is a budget that puts Michiganders first,” Whitmer said in a press release. “We are coming together to grow the middle class, support small businesses and invest in our communities.”

This year’s budget makes significant investments in child care, education, job training and infrastructure. It also supports the environment and adds $500 million to the state’s Rainy Day fund.

We’re sharing details of the budget in several key areas of interest for philanthropy. 

Child Care

•    Increasing eligibility: $108.1 million to make 105,000 more children eligible for child care by increasing income eligibility to 185% of the federal poverty level through 2022-23 and 160% thereafter. 

•    Supporting child care workers: $158 million for a 30% pay increase for child care providers with an additional $222 million for a temporary increase.

•    Staff bonuses: $30 million for a one-time $1,000 bonus for all child care staff. 

Education and Job Training

•    Tuition costs: $55 million for the Michigan Reconnect program that provides tuition-free education and training.

•    Support for frontline workers: $25 million to the Futures for Frontliners program, covering tuition costs for frontline workers who worked during the pandemic.

•    Job training: $40 million for the Going PRO program that provides employer-based training grants.

Public Health and Safety

•    Nursing home staff support: $460 million to make a $2.35 per hour raise for direct care workers in nursing homes and other facilities.

•    Corrections: $7.3 million to train new corrections officers.

•    Police training: $7.7 million for a State Police trooper recruit school.

Economic and Infrastructure Investments

•    Increased revenue sharing: A 2% increase in statutory revenue sharing.

•    Bridge infrastructure: $196 million to maintain and repair local bridges across the state.

•    Unemployment insurance: $150 million to the Unemployment Insurance Trust Fund.

•    Budget stabilization: $500 million to the Budget Stabilization Fund, bringing it to a record $1.4 billion.

Whitmer emphasized the role of the budget in supporting families, workers and small businesses all across Michigan.

“The budget is a testament to what we can do when we work together,” Whitmer said. “Now, we should continue in that spirit of collaboration to use the billions of federal dollars we have to help our families, communities, and small businesses thrive."  

Want more?

Read the full budget.

Read Governor Gretchen Whitmer’s budget press release.

If you have any questions about the state budget, please contact Regina Bell, director, CMF's government relations and public policy.

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