After months of complex negotiations, the Michigan Legislature passed a bipartisan budget for the next fiscal year.
This summer, the Detroit Regional Chamber led other business organizations in outlining critical talent pipeline priorities to legislative leaders, emphasizing the urgent need for strategic, long-term education investment. While the budget includes some significant wins, the final budget fails to fully embrace this strategy, falling short on several key requests from the state’s employers.
A deposit of $300 million into the Postsecondary Scholarship Fund, which supports the Michigan Achievement Scholarship, is a significant victory for college affordability and accessibility. This investment was a key request from the business community to help close the state’s talent gap and move toward the Sixty by 30 goal.
Additionally, the budget provides a 3% increase in operational funding for public universities, a 2.1% one-time increase for community colleges, and a record-high $10,050 in K-12 per-pupil funding, supporting the entire educational ecosystem. Creating a Dual Enrollment Task Force and new funding for Career and Technical Education programs also represent positive steps toward strengthening pathways from education to career.
However, the budget is a step backward in other crucial areas. The Going Pro Talent Fund, which provides direct training grants to employers, saw a significant funding reduction, with its remaining appropriation shifted to one-time funding. This program is essential for upskilling the current workforce to meet modern demands. Cutting a successful, employer-led initiative is an anti-economic growth decision that will make it harder for businesses to upskill their workforce to meet the growing needs of tomorrow. Furthermore, the budget reduces funding for the Michigan Reconnect program by $10 million. While the reduction is not expected to affect current participants, it signals a lack of commitment to a vital program for adult learners seeking skills and credentials.
The Chamber has consistently advocated for expanding programs like Going Pro and MI Reconnect and will continue to advocate for their expansion in future supplementals and budgets.
The budget represents a missed opportunity to fully commit to the long-term, sustainable investments needed to address Michigan’s educational challenges. While the funding for student scholarships is commendable, the cuts to proven workforce training programs are counterproductive. The Chamber will continue to advocate for a comprehensive talent strategy that supports students and employers to ensure the state’s future prosperity and global competitiveness.