Bi-partisan budget agreement includes funding for Children’s Savings Accounts
Today, the Michigan legislature passed a fiscal year 2021–22 budget ahead of the October 1 statutory requirement. In total, the General Fund budget is $11.8 billion. When combined with the $17 billion K‑12 school aid budget already signed and federal funds, the governor said the total budget would be just under $70 billion.
The budget agreement includes $2 million in funding for Children’s Savings Accounts, one of CEDAM’s top policy priorities. Other highlights include:
- $100 million for community revitalization and placemaking grants to support economic development in local communities
- Increased funding for workforce development including $55 million for the Michigan Reconnect program, $25 million for Futures for Frontliners program, $40 million for the Going PRO program, and $8 million for pre-apprenticeship/apprenticeship training programs that will expand Michigan’s talent pool in the construction and building trades
- Increases in funding for childcare including $108.1 million to increase the amount of children eligible for child care by increasing income eligibility to 185% through FY23, $158 million for an ongoing 30 percent rate increase for childcare providers, $36.5 million over three years to expand the number of childcare spaces for infants and toddlers
- A two percent increase in statutory revenue sharing (cities and villages receive revenue earmarked by the state constitution and statute to help pay for core governmental services)
- Funding for a new Office of Rural Development within MDARD
The governor plans to sign the bipartisan budget into law before the end of the month.
The legislature is expected to take up American Rescue Plan Act (ARPA) funding in supplemental bills released throughout the fall and spring. CEDAM will continue to advocate for using ARPA funding for affordable housing and community economic development needs across the state.