Governor Rick Snyder of Michigan
Key investments address infrastructure needs, education and stronger, safer communities while paying down long-term debt
Wednesday, Feb. 8, 2017
LANSING, Mich. — Gov. Rick Snyder’s recommendation for the fiscal year 2018 budget continues the precedent that has been set for fiscal responsibility and responsible investment over the past six years. The budget plan continues paving the path to a more prosperous future with key investments in economic development, talent development, infrastructure, education, and stronger, safer communities.
The overall budget includes $10.1 billion in general fund dollars, an increase of 1.75 percent compared to fiscal year 2017, and totals $56.3 billion, an increase of 2.5 percent.
The governor also offered a 2019 projected budget today, continuing his emphasis on long-term planning.
“This budget is a reflection on everything we’ve been able to accomplish over the past six years, and we should be proud of those achievements,” Snyder said. “Our economy is growing, our labor force is expanding, and our state’s fiscal house is in good shape. In the same spirit that has brought us this far, we need to continue making smart, responsible investments in critical areas like education, infrastructure, and the professional trades. In partnership with the Legislature, I look forward to once again finishing our budget early so we can continue our journey on the path to an even better Michigan.”
Lt. Gov. Brian Calley and State Budget Director Al Pscholka joined Snyder in outlining the budget recommendation to a joint session of House and Senate appropriations committees.
“We have worked hard over the past six years to complete fiscally responsible budgets while investing in core areas, and this year’s budget is no exception,” Calley said. “Numerous economic indicators demonstrate that Michigan is on the right path. We need to stay on that path by continuing to make smart decisions that protect our residents and boost our economy for generations to come.”
A reformed tax code, strategic economic investments, and a renewed focus on talent development have helped to make Michigan’s comeback a model for the nation. The state’s economic climate continues to improve with almost 500,000 private-sector jobs added to the state since December 2010, making Michigan the leader in job growth in the Great Lakes region. Also, since December 2010, the state has seen its unemployment rate drop and remain near its lowest level in more than 15 years. Personal income growth continues to be positive and the state’s housing market now beats the national average with a 44-percent increase since 2010.
“This plan continues the strong tradition of making sure the budget is in balance for the long term,” said State Budget Director Al Pscholka. “The recommendations announced today add to our savings account while addressing future liabilities and needed infrastructure investments in roads, facilities, and technology. And we do it all with a continued focus on ensuring one-time funding is not depended upon for ongoing costs in future years.”
To keep Michigan on this path to the future, highlights of the recommended budget include:
Investing in the 21st Century Economy
To continue building a strong Michigan economy, the governor today recommended more investments in business attraction and retention, as well as talent development:
Investing in a 21st Century Infrastructure
To address the state’s deteriorating infrastructure the Governor created the 21st Century Infrastructure Commission. The commission published a report assessing Michigan’s infrastructure and providing recommendations. Based on that input, the Governor makes the following recommendations to ensure a better Michigan is left for future generations:
Per-pupil K-12 Funding and Supporting At-Risk Youth
Gov. Snyder's continuous strong support for K-12 education is clear in the recommended FY 2018 budget. The Governor also makes significant recommendations for aiding at-risk youth. The definition of at-risk students has been expanded for free and reduced lunch income eligibility, children in families receiving food (SNAP) or cash assistance (TANF), and migrant, homeless and foster care children. Among other things, the highlights include:
Higher Education Increases
Providing all of Michigan’s students with access to opportunities in higher education remains a top priority for the Governor. The recommended FY2018 budget includes increases in higher education funding, financial aid assistance, and scholarship and grant programs:
Assisting Michigan Families
Strong communities require healthy residents. Gov. Snyder recommends key investments to assist Michigan’s most vulnerable populations so they, too, can be on a clear path toward the future.
Responding to Public Health Issues
Gov. Snyder’s recommended budget includes funding to help protect Michiganders from public health issues. Highlights include:
Investing in Michigan’s Safety
Ensuring the safety and security of Michiganders has been a top priority for Gov. Snyder since he first took office, and this year’s budget proposal includes significant investments to continue efforts to increase safety in our state:
Commitment to Natural Resources and Agriculture
In an effort to enhance Michigan for the future, Gov. Snyder has recommended numerous investments to support the state’s agriculture industry and natural resources:
Decreasing the State's Liabilities and Saving for the Future
Gov. Snyder's record on fiscal responsibility is strong, and this budget recommendation is no different, providing future generations with confidence that the current fiscal policies are erasing past financial burdens.
The state’s new fiscal year begins Oct. 1, 2017.
Copies and more details of the governor’s recommended budget are available at www.michigan.gov/mibudget. Join the conversation on Twitter at #mibudget.