On March 11, the Research Council’s Bob Schneider and Craig Thiel presented an overview of the Governor’s budget recommendation and the state’s budget picture to the Lansing Regional Chamber of Commerce.  The presentation reviewed how FY20 budget deliberations were dominated by financing the state’s pandemic response efforts and addressing anticipated revenue declines that were assumed to result from a slowed economy. However, relaxed restrictions over time and significant federal support tied to the pandemic helped the state avoid large-scale budget reductions.

One month after Governor Whitmer released her FY2022 budget proposal, new federal stimulus revenue in response to the COVID-19 pandemic will again shape budget deliberations. With state revenues coming in stronger than initially expected over the last year, the administration had significant General Fund resources available that are tapped to support a number of major investments in areas including education, infrastructure, small business support, and public health.