A new state budget has been approved by the Michigan Legislature, but not everyone’s a fan.
State Senator Aric Nesbitt tells us legislative Democrats rammed through the spending plan with no Republican input after a marathon session around 5 a.m. Thursday. He says the package relies on an income tax increase caused by the cancellation of a previously-scheduled income tax cut.
Nesbitt says the plan also raids the teacher pension fund of $670 million and does not increase per-pupil funding for schools.
“First time there hasn’t been a per pupil foundational allowance, educational foundational allowance increase in nearly a decade and a half,” Nesbitt said.
Nesbitt says this budget comes a year after Democrats blew a $9 billion surplus that was largely caused by an infusion of federal funds. With the surplus gone, he says lawmakers are finding other ways to fund priorities.
“That’s why they’ve had to do the $700 million income tax increase. That’s why they’ve had to go ahead and raid $670 million a year ongoing from the teacher pension fund.”
According to the Associated Press, the $82.5 billion package includes $59 billion to fund state agencies and $23 billion for education. The approved $23.4 billion school aid budget will provide free community college for all and free preschool for most.
Supporters of the budget also say it includes nearly $100 million for affordable housing projects and nearly $60 million to create a new Michigan Innovation Fund that will support startup companies. The budget also includes nearly $335 million in “enhancement grants,” sometimes referred to as special projects.
