On May 24, 2018, Governor Rick Snyder’s administration and key lawmakers struck a budget deal that includes an increase in spending for infrastructure.
Under the terms of the deal, the state will spend $400 million more than anticipated on infrastructure primarily on roads and bridges. At this point we are not if this surplus will be spent in fiscal year 2018 or fiscal year 2019 but we are projecting it to be spent in 2019.
With agreement on the budget targets in place. Legislators on House-Senate conference committees will iron out details so the Republican-led Legislature can vote as soon as the first week of June.
Among the major components of the agreement:
- An increase of more than $400 million for infrastructure;
- A $115 million deposit to the Budget Stabilization Fund, bringing it to more than $1 billion;
- $58 million in new funding for school safety initiatives like grants to schools, the OK2Say hotline program and school counselors;
- Full funding of the $100 million Mr. Snyder requested for his workforce training and education program; and
- The increase to K-12 schools Mr. Snyder requested and the Legislature had approved of $120 to $240 per pupil based on the 2X formula.