Governor Whitmer and state lawmakers reach budget agreement
(06/29/2020) - An agreement to address a $3.2 billion shortfall in Michigan’s 2020 budget has been announced by Gov. Gretchen Whitmer and legislative leaders to respond to deep budget shortfalls brought on by the pandemic crisis.
Whitmer, Senate Majority Leader Mike Shirkey and House Speaker Lee Chatfield said in a joint statement Monday night that he agreement includes reductions in funding. It also provides federal COVID-19 relief funding for schools, universities, community colleges and local governments, businesses and workers.
The big focus was on supporting teachers, school districts, higher education, and local governments.
$512 million will go towards schools, plus 53 million dollars in hazard pay for teachers. Another $200 million will go towards universities and community colleges. $150 million is set aside for for local governments.
The deal also includes support for Michigan businesses, workers, and residents who were also hit financially by COVID-19.
That includes $153 million to support businesses and $256 million for child care, rental, and other individual assistance.
At the end of the day, the deal leaves Michigan with $94 million in unspent federal relief funding.
They said would work together to address shortfalls in next year’s budget and asked for congressional help in the next budget. The current budget year ends Sept. 30. The agreement still requires approval by the full Legislature.
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