Governor Rick Snyder of Michigan
Key investments address transportation and infrastructure, education, safety, and the environment
Wednesday, Feb. 7, 2018
LANSING, Mich. — Gov. Rick Snyder, along with Lt. Gov. Brian Calley and incoming State Budget Director John Walsh, outlined the Fiscal Year 2019 executive budget recommendation to a joint session of the House and Senate Appropriations Committees today.
The final executive budget recommendation from Gov. Snyder capitalizes on the positive momentum that has been created by his implementation of fiscally responsible policies and investments throughout his tenure. The fiscal year 2019 budget recommendation includes investments that will more immediately improve Michigan’s highways and bridges, increase the safety of communities, and provide students the support they need for a successful future. Also, several tax cuts are providing additional relief for Michiganders.
“We have accomplished so many great things together since I first took office, but our work is not done,” Gov. Snyder said. “The budget I presented today is exactly what we need to keep the state moving in a positive direction. By continuing our relentless support of areas like education, safety, and transportation, we maximize the impact of the strategic initiatives we have implemented over the years. We need to ensure that the important work happening here in Michigan keeps accelerating.”
The total budget includes $56.8 billion, which is an increase of 0.6 percent from the previous year. The 2019 general fund stands at $10 billion, which remains unchanged from the previous year. Inflation for FY2019 is estimated to be 1.9 percent.
“All indicators show Michigan heading in a very positive direction, and the ground we have covered since Gov. Snyder took office cannot be ignored,” Lt. Governor Calley said. “We rank number one in the Great Lakes Region for private-sector job growth and per-capita income growth. We have seen the lowest unemployment rate in 17 years. It is important that we keep this positive traction going to provide the right support for Michigan not only for today but also for tomorrow.”
Michigan once was ranked at or near the bottom in many areas of economic prosperity when compared to other states. Under Gov. Snyder’s leadership, the state has seen a remarkable comeback. Michigan now ranks number one in manufacturing jobs, and has the second most diverse agricultural industry in the country. In-bound migration is on the rise, as well as home prices. By implementing fiscally responsible budgets, the prosperity of the state is outpacing many others in the Great Lakes Region and in the nation.
“The momentum we have seen in the state during the past several years is turning heads,” said incoming State Budget Director John Walsh. “Not only are we making sure we have a sound, balanced budget that Michiganders can feel good about – we are paying down long-term debt, maximizing returns on program investment, and saving taxpayers money.”
A large part of the budget story reflects tax reforms that have been adopted in the preceding years, which will have a direct and positive impact on residents and businesses in FY2019. The Homestead Property Tax Credit will see an increase of $300 for hardworking homeowners and at the same time see an increase in the income cap of $10,000 – benefitting even more families. Sales tax on trade-in vehicles is phasing out, and Personal Property Tax reform will aid businesses across the state, helping to further grow the economy and create more private-sector jobs.
Other investments and highlights of the FY2019 executive budget recommendation 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 recommendation supports the road funding package and further invests in the repair of Michigan roads.
Providing Quality Education for Students from Kindergarten through College
Gov. Snyder's relentless support for K-12 education is again made clear in the 2019 budget recommendation by the highest increase in the minimum per-pupil funding amount in the past 15 years, with additional funding for high school students and those students in career and technical training programs. Special needs students and at-risk students also see investments.
Investing in Michigan’s Safety
Ensuring the safety of Michigan’s cities and counties continues to be a top priority for Gov. Snyder. The FY2019 budget recommendation reflects this with further investments to support the security of the state.
Commitment to a Clean Environment
Strategic One-time Investments
Along with continuing investments, the governor recommends 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.
The state’s new fiscal year begins Oct. 1, 2018.
Copies and more details of the governor’s recommended budget are available at www.michigan.gov/mibudget. Join the conversation on Twitter at #mibudget.