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Whitmer And Michigan GOP Legislators Reach Deal On Budget Shortfalls Brought On By COVID-19

Photo provided by the State of Michigan

Governor Gretchen Whitmer and the Legislature’s Republican leaders have reached a deal to address a shortfall in the current budget caused by COVID-19 and its impact on the state’s economy.

The deal bridges most of a two-point-two billion dollar shortfall with only three months left in the current fiscal year. The deal calls for a freeze on new hiring and staff promotions. And the state will pull 350 million dollars from its Budget Stabilization Fund.

This would be the first time in six years the state’s raided the fund informally dubbed the “rainy day” savings account.

Also, there would be cuts to K-through-12 school, community colleges, and public universities. Much of those cuts would be backfilled by federal money that comes from the CARES Act – with the hope for more federal aid in the future.

The next step would be for the Legislature to adopt and send a new budget to Governor Whitmer. And then go to work on addressing the revenue loss in next year’s budget.