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Governor Snyder Presents Fiscal Year 2014-2015...

Wednesday, Governor Rick Snyder, Lt. Governor Brian Calley and State Budget Director John Nixon presented the executive budget for the 2014 – 2015 fiscal year which begins on October 1, 2014.  The recommended budget totals $52.1 billion, with nearly three-fourths of dollars going towards education and health and human services.  They touted the proposal as one that will pay the state’s bills, invest wisely and save for the future.  While this budget recommendation includes increased spending in several areas, it was noted throughout the presentation that the state budget made hard cuts over the past few years and the administration is hoping to get back to pre-2011 levels in many areas.  Below are highlights from the Governor’s Executive Budget recommendation.



  • Increased funding of 3% for both K-12 schools and community colleges and an increase of 6.1% for higher education. 

  • The budget calls for an increase to the Homestead Property Tax Credit, which took a hit in the 2011 budget.  Under the proposed budget, the plan would lower the income multiplier from 3.5% to 3% and would increase the income limit to $60,000 per year.  The expanded credit would apply to the 2013 tax year.

  • A $36 million increase to local revenue sharing payments through the Economic Vitality Incentive Program (EVIP) and an increase of 3% to constitutional revenue sharing.

  • An added $120 million to the budget stabilization fund, which is the state’s savings account.  Also, the state would make a $122 million deposit into the state’s health savings fund to help offset future health care costs.  With the additional dollars, the total amount in savings would be $822 million.

  • $385,000 to create the Office for New Americans, the newly created state office aiming to attract immigrants with advanced academic degrees or entrepreneurial skills to Michigan.

  • $2 million in additional funding for the Pure Michigan campaign.

  • $71.7 million to implement the Health Michigan Plan, which expands Medicaid coverage within the state.

  • The budget calls $254 million to match all available federal aid available to fix Michigan’s roads and bridges.

  • An additional $17.8 million to train 100 new state troops and 31 motor carrier officers at the Michigan State Police Training Academy.

  • The budget includes the $17.5 million for the next 20 years to aid Detroit pensions that the Governor called for last month. 


Using the Governor’s recommendations as a template, the House and Senate Appropriations Committees will now begin introducing their own budgets for each department and begin holding committee hearings on each proposal.  The targeted deadline to have all budgets completed and to the Governor for his signature is June 1.  For more information, please visit http://michigan.gov/budget.

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