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Detroit Regional Chamber > Advocacy > State Budget Highlights for the Business Community

State Budget Highlights for the Business Community

July 12, 2023

Gov. Gretchen Whitmer has approved the historic $81.7 billion state budget for Fiscal Year 2024, which passed in a balanced, bipartisan fashion with a focus on growing the economy, lowering costs, and supporting student success. The Detroit Regional Chamber’s legislative priorities are well represented in the budget, and many of the programs the Chamber advocates for saw continued or increased funding.

The “Make it in Michigan” budget includes a general fund total of $15.2 billion and a School Aid Fund total of $19.4 billion.

See below for a breakdown of the budget and the Chamber’s perspective:

Education and Talent

The FY24 budget aims to get kids back on track and support student success. The budget continues historic public education investments, including:

  • 5% increase in the foundation allowance for all K-12 schools ($458 per pupil)
  • Increase in funding and lower age requirement to expand Michigan Reconnect Program to 350,000 people
  • $10M towards a FASFA Completion Challenge in which a school will receive $50 per student that fills out a FASFA form
  • $50 million increase in Michigan Achievement Scholarship
  • 9% increase in community college operations
  • $200 million increase in funding for at-risk students, a $300 million increase for special education students, and a $13 million increase for English language learners
  • 4% increase in higher education operations funding
  • $37 million for College Success Fund and student wrap-around services

Chamber Perspective 

 

A top priority of the Chamber is growing and expanding the workforce pipeline in Michigan, which entails more individuals moving to and staying in the state and ensuring residents are well-equipped for the jobs of tomorrow. Investment in education is key to making that happen.

 

The new budget aligns with the Chamber’s priority of talent retention and expansion by continuing historic public education investments.

 

Additionally, funding has been increased for at-risk students, special education students, and English language learners to ensure these individuals are prepared for tomorrow’s workforce. The budget also increases funding for Michigan Reconnect and the Michigan Achievement Scholarship – both efforts that the Chamber has long-supported – which aim to increase higher education access.

 

RELATED: Learn about Detroit Reconnect.

Mobility and MICHauto

The budget makes critical investments in infrastructure and the state’s electric future, including:

  • $500 million allocated to the Make it in Michigan Fund/SOAR Fund to bring home advanced manufacturing projects
  • $350 million for the Make it in Michigan Competitiveness Fund to win federal resources from the Bipartisan Infrastructure Law, the CHIPS and Sciences Act, and the Inflation Reduction Act
  • $125 million for low or zero emissions school buses and charging stations
  • $750,000 increase for FIRST Robotics
  • $15 million for Talent Action Teams
  • $1 million for the state’s motor vehicle fleet to transition to EV cars
  • $21 million for clean energy and EV infrastructure
  • $5 million for Lake Michigan EV Circuit to build the best electrified road trip in the continent along Lake Michigan
  • $5 million for a battery recycling research hub spurring cutting-edge research in mobility and electrification sector
  • $35 million of additional funding for the Going PRO talent fund to further expand employer-based training grants

Chamber Perspective

 

A priority of MICHauto is increasing electric vehicle adoption and expanding charging locations throughout the state. The budget address this priority by including funding to help schools purchase EV busses and charging stations, investing funding into building EV charging stations near U.S. highways and major trunklines, and transitioning the state’s car fleet to EV. By enhancing its charging infrastructure, Michigan can continue to grow its EV market and retain its global leadership in the automotive and mobility space.

 

Additionally, the FY24 budget also furthers the Chamber’s priority of funding the Talent Action Teams, whose focus is to ensure Michigan has employees for the vehicles of the future.

 

Learn more about MICHauto’s policy priorities.

Public Safety, Health, Community, and Housing

To keep communities safe, healthy, and revitalized, the budget prioritizes funding for public safety, invests in the health of Michigan families, and makes critical investments in infrastructure, including:

  • $46 million for the implementation of voting reform changes and financial disclosure
  • $5 million for the Michigan Defense Center
  • $5 million to expand National Guard Tuition Assistance program
  • $2 million for the National Guard Convention in Detroit
  • $30 million for freeway cameras
  • $20 million for Henry Ford Health Center
  • $4 million for the Charles H. Wright Museum
  • $50 million for affordable, community housing in Downtown Detroit
  • Onetime $10 million allocation for the Selfridge Airforce Base to improve and maintain infrastructure

Chamber Perspective

 

To build for the future, Michigan needs to continue to grow and expand its defense foundation. This budget creates a long-term Michigan Defense Center and continues investment in Selfridge Airforce Base, which can help build and grow Michigan as a defense hub.

 

The that expand Michigan voting access and efficiency. It’s crucial that Michigan voters believe that their votes are counted in a safe and secure way and that elected officials are working in an ethical fashion.