Leaders announce FY 2021 budget agreement

LANSING, Mich. — Senate Appropriations Committee Chairman Jim Stamas, House Appropriations Committee Chairman Shane Hernandez and State Budget Director Chris Kolb on Monday announced they have reached agreement on the spending parameters for the state’s fiscal year 2021 budget.

“This has been a year unlike any other,” said Stamas, R-Midland. “The unprecedented challenges Michigan has faced meant that working together — Republicans and Democrats and the Legislature and the Administration — was absolutely essential. This agreement means a fiscally-responsible budget will be in place in time for the new fiscal year.”

Despite the impact of COVID-19 on the state’s economy and budget, the agreement prioritizes education by ensuring no reduction in funding to K-12 public schools. It also stipulates no cuts to revenue sharing for local governments.

“Even in these most challenging of times, we are coming together to protect the top priorities of Michiganders – including students and schools, and the essential local services people in communities across the state rely on every day,” Hernandez said. “We must proceed wisely and cautiously because the economic and budgetary ramifications of COVID-19 are far from over. The budget for the upcoming fiscal year must be sound and sustainable so we are ready for what lies ahead.”

House and Senate subcommittee chairs will now work with state departments and the State Budget Office to resolve the details of each budget. Final legislative action will occur on all budget bills next week.

“COVID-19 has had an unprecedented impact on our state budget, and by quickly working together since receiving the August revenue estimates we’ve been able to build a budget framework that reflects a bipartisan commitment to moving our state forward,” said State Budget Director Chris Kolb. “These targets will provide critical funding for our key priorities such as education, health care and skills training, and I appreciate the partnership I’ve had with both Sen. Stamas and Rep. Hernandez.”

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