Michigan Gov. Rick Snyder signed the state’s fiscal year 2019 budget into law Thursday June 21, ensuring smart, responsible and historic investments are made that will improve the quality of life for all Michiganders.
Today’s signing marks the eighth straight year the state budget has been completed well in advance of the required deadline, avoiding the stalemates and government shutdowns of previous generations.
“I am proud of the budget I signed today, as well as the previous seven budgets. We have created a new culture and expectation here in Lansing of getting budgets done responsibly, thoughtfully and early,” Snyder said. “This is further proof of what can happen when people commit to working together in a positive fashion without the fighting and negative discourse that has become too commonplace. This budget will maximize Michigan’s momentum with significant investments in our key priorities. We also have continued a strong commitment to fiscal responsibility by paying down debt and increasing our Rainy Day Fund balance to more than $1 billion.”
Senate Bill 848, sponsored by Sen. Dave Hildenbrand, provides $39.9 billion in state funding for the upcoming fiscal year.
“This is an excellent budget that will continue to propel our state on a positive path forward,” State Budget Director John Walsh said. “It has been a privilege to work on a spending plan that is fiscally responsible and centered on key investments that will help families across Michigan.”
With an unemployment rate that continues to remain below 5 percent and more than 540,000 new private-sector jobs added since December 2010, Michigan’s economy remains strong and the future is bright.
“Our budget success over the past eight years has been impressive and lays the foundation to build on our comeback now and into the future,” said Lt. Gov. Brian Calley.
Budget accomplishments during the Snyder/Calley administration have included:
- Serving the health care needs of more than 670,000 Michiganders covered by Healthy Michigan.
- Investing in 13 trooper recruit schools to hire 994 troopers and bring our State Police enlisted strength to its highest level in 18 years.
- Keeping corrections spending in check while improving prisoner training and reducing recidivism rates.
- Dramatically increasing road funding by more than $1 billion – an increase of more than 42 percent since 2015.
- Reducing long-term liabilities by more than $20 billion and putting the state on track to be free of retirement debt by 2038.
- Growing a depleted Rainy Day fund from $2 million to more than $1 billion.
- Investing more than $300 million into needed technology upgrades to make government more efficient.
“I am extremely proud of what we have accomplished through these eight budgets,” Calley said. “It has been an honor to serve as Gov. Snyder’s partner in restoring fiscal responsibility and common sense to state government budgeting.”
Specific highlights of the fiscal year 2019 budget include:
Investing in Michigan Roads and Infrastructure
In 2015, the governor signed a $1.2 billion road funding package to address the state’s crumbling infrastructure and provide a long-term solution for the state. This budget supports the road funding package and further invests in the repair of Michigan roads.
- A total of $150 million to support the required deposit to the road funding package.
- Another $300 million in one-time revenue dedicated to fixing our roads as a result of the surplus identified after the Consensus Revenue Estimating Conference in May.
- Combined with over $600 million in new revenue generated by the 2015 package, the required deposit of $150 million, and the added one-time revenue, increased resources exceed $1 billion for maintaining and improving Michigan’s transportation infrastructure.
Investing in Michigan’s Safety
Ensuring the safety of Michigan’s cities and counties continues to be a top priority for Gov. Snyder. The FY 2019 budget reflects this with further investments to support the security of the state.
- Up to an additional 75 Michigan State Police troopers will be funded with $4.1 million on-going funding, and a $4.8 million one-time payment. This will complement an attrition school of 80 troopers for a total of up to 155 newly trained troopers.
- The Department of Corrections will train over 350 corrections officers to fill department vacancies with the support of $9.2 million.
- The Department of Natural Resources will fund 7 new conservation officers with a $1 million investment.
- To help reduce and eliminate sexual assault on college campuses, the budget provides for a $1 million investment in the Campus Sexual Assault Grant Program.
Commitment to Fiscal Responsibility
In addition to continuing the strong practice of paying down debt and keeping the state on a direct course to paying off its retirement liabilities by the year 2038, this budget also makes a substantial investment in the state’s Rainy Day Fund.
- An additional $115 million is provided for the Rainy Day Fund, pushing the state’s savings account to more than $1 billion in FY 2019.
Strategic One-time Investments
Along with continuing investments, the budget provides for several one-time investments that support people and programs across Michigan. These strategic investments are a responsible way to use taxpayer dollars to make investments in technology, the economy, and other important areas that are critical to state success.
- Full funding of the governor’s recommendation of $100 million for the Marshall Plan for Talent to transform the way Michigan will develop its talent to jobs pipeline.
- A total of $58 million across fiscal years 2018 and 2019 in new funding for school safety initiatives, which includes school safety grants, school mental health counselors, and OK2SAYenhancements (tip hotline for schools).
- Continued support in the amount of $1 million for the Rising Tide Program that helps smaller rural communities in Michigan that may not have been included in the great economic comeback. State resources are provided for talent development, economic development, and community development to assist their local economies.
The bill is now Public Act 207 of 2018. The governor did not veto any portion of the budget.
For more information on the legislation, visit https://www.michigan.gov/budget.