by Scott McClallen
Gov. Gretchen Whitmer signed a $54 billion operating budget that, combined with the 2023 education budget, reaches a record annual spending of $77 billion.
“Today, I am thrilled to sign my fourth balanced, bipartisan state budget that delivers on the kitchen-table issues that matter most to working families, was done on time, and does not raise taxes by a dime,” Whitmer said in a statement. “The budget will protect public health and public safety, expand mental health resources, grow Michigan’s economy and workforce, empower working families and communities, and pays down billions in debt.”
More than $21 billion will fund Michigan education in 2023, fueled by federal COVID money to provide a record high $9,150 per-pupil funding for every public-school student.
Approximately $1.7 billion will be spent to shore up K-12 and university pension programs, and another $475 million will be made available for school capital improvement and voluntary consolidation.
Financial relief for taxpayers didn’t make the budget, but lawmakers included $251 million of economic development and workforce grants, $205 million in enhancement grants, and $331 million in special grants, including $100 million to a billionaires project.
Other lawmaker pet projects include $30 million for an amphitheater in Grand Rapids, $130 million for an electric vehicle training center, and $40 million for the Joe Louis Greenway, a 27.5-mile greenway in Detroit that will connect parks and neighborhoods.
This budget spent $7 billion more than last year and left $7 billion in the state’s coffers. GOP lawmakers and Whitmer both say they want tax relief but have disagreed on how to provide it.
The budget spends much one-time funding for one-time purposes. The budget transfers $180 million to the Budget Stabilization Fund, boosting the rainy day fund balance to nearly $1.6 billion.
“I am pleased we were able to effectively use taxpayer dollars to provide critical everyday services while also improving our infrastructure, protecting our communities, and building a stronger economy,” Senate Appropriations Committee Chair Jim Stamas, R-Midland, said in a statement. “We have achieved a transformational state budget focused on long-term results and economic growth. And it does it all while living within our means, setting aside resources to provide future tax relief to struggling Michigan families and saving for a rainy day.”
Whitmer line-item vetoed more than $21 million for GOP-proposed pregnancy centers and adoption education.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Gretchen Whitmer” by Gretchen Whitmer.
