Governor Gretchen Whitmer and state lawmakers have $26 billion to work with to draw up the next state budget.
That number is $2 billion more than initially anticipated as the state dealt with the impact of COVID-19 on the economy.
That number was adopted Friday by budget experts from the House and the Senate, and state Treasurer Rachel Eubanks. Eubanks says the economy is rebounding as more people get vaccinated, people are spending money, and the state budget’s getting a boost from federal COVID-19 recovery funds.
“I’m delighted to say we’re in a much better place today than we were a year ago," Eubanks said. “There are a lot of reasons to be optimistic. People are feeling better about where we’re headed as the virus declines, and safe and healthy Michiganders will be the key in helping our economy rebound".
David Massaron is Whitmer’s budget director. He says an infusion of federal COVID-19 recovery funds creates opportunities for big thinking.
“We have said that we want to make sure that any investment we make is transformational, so that after that investment is made you can fundamentally see the change that’s occurred," Massaron said. "And then we’ve also said that it needs to be sustainable".
This development comes a day after Governor Gretchen Whitmer and the Legislature’s Republican leaders agreed to end a standoff and resume in-person budget talks. An agreement between the governor and the Legislature on how much money is available is an important step toward finalizing the state budget.