Governor Gretchen Whitmer has reached an agreement with the Republican-led state legislature to balance the state’s 2020 budget.
The state is dealing with a $2.2 billion budget shortfall caused by the coronavirus pandemic.
The plan calls for a combination of budget cuts, dipping into the state’s rainy day fund, and utilizing federal coronavirus relief money to make up for a steep decline in state tax revenue. Most of that money, about $915 million of it, comes from allocations approved by Congress as part of the CARES Act.
The new 2020 budget will provide hazard pay for teachers, fill gaps in the school aid fund, and provide support to local governments and businesses.
The agreement only addresses problems with the 2020 budget year, which ends in October. There are still anticipated budget shortfalls in next year’s budget and lawmakers will have to spend the next few months hashing out a plan to deal with that.
You can read more on MLive.
As local news dies:
- Costlier government1
- Less community connection2
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