The State Budget: What Does It Mean to Us?
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Saginaw Valley State University students work in the Zahnow Library with instructor on a specialized learning program.
Legislative leaders and Gov. Jennifer Granholm last week signed a budget deal for the 2004-2005 fiscal year beginning October 1st.
Governor Granholm said that an agreement on the fiscal year 2005 budget will improve the quality of life in Michigan and continue to grow the state's economy.
According to the Senate Fiscal Agency, a $1 billion plus deficit has been eased through $450 million in new revenue and about $955 million in spending cuts and accounting adjustments.
Some of the major provisions of the agreement are:Funding for the Healthy Michigan Fund will increase to $30.5 million.
Podiatric coverage will be restored for healthy adults on Medicaid.
The Department of Corrections will see $17.5 million in cuts.
The Department of Information Technology will see $4 million in cuts.
There will be a $10 million cut to the Comprehensive Transportation Fund.
The state's $6,700-per-pupil foundation grant will be maintained.
There will be a $6.6 million cut to 20J funding, which is sent to some of the wealthier school districts in the state.
The Detroit Public Schoolswill maintain their $15 million grant for the school reform experiment.
There will be a $2 million cut to the Family Independence Agency.
For the class of 2005, all Merit Award winners must attend in-state schools to receive the award.
"We faced some high hurdles due to reduced federal funding and the effects of the national economic slowdown, but through bipartisan cooperation, we forged a budget agreement that will help us bring more jobs to Michigan and enhance our quality of life," said Gov. Granholm. "We have once again protected what matters most to Michigan families, while keeping our tax structure competitive."The Office of the State Budget said that despite the challenging economic times, a number of Governor Granholm's top priorities will see an increase in funding for the coming fiscal year as a result of the budget agreement.
Education remains the top priority as Granholm's recommendation to increase the minimum per pupil foundation allowance to $6,700 per pupil has been agreed to and funding to the top tier 20J school districts, those with per pupil foundation grants greater than $9,000, is being held at current levels.
A $15 million increase in funding for the Technology Tri-Corridor represents new investment in job growth and research. Increased support for prevention services will reduce tobacco related illnesses and help control overall medical care costs. Additional funding to reduce the DNA evidence backlog and the continuation of the State Police Recruit School will give law enforcement new resources to fight crime.
In addition, critical health care services to vulnerable citizens, job training and job creation programs, and support for day care services are just a few of the items for which funding will be preserved for 2005.
One item of ongoing discussion between the administration and the Legislature is how Governor Granholm's plan to keep college and university tuition rates below the rate of inflation will be implemented.
"I remain steadfast in my commitment to keeping tuition affordable to the families of this state," said Granholm. "We will continue to work with the Legislature and the higher educationinstitutions to ensure that this goal is achieved."
Governor Granholm said she is proud of the continued efforts to make state government more efficient and responsive, while protecting the services Michigan families need most.
"While we began this process with yet another $1 billion shortfall, we balanced the budget with a sensible mix of spending cuts and revenue that will allow the State to continue to provide the essential services that the citizens of this state deserve," said Gov. Granholm.###
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