HFA Announces 2020-21 Omnibus Budget


Last week, the Michigan House Fiscal Agency released the 2020-21 omnibus budget analyses. The breakdown of the budget, so far, includes $17.65 billion for the School Aid Fund and $45.1 billion for the general omnibus budget, totaling $62.75 billion for the coming year, The Detroit News reports. While the general omnibus bill included $270 million in reductions from the year prior, the same is not true for education. 

Specifically, there are no reductions included for K-12 public schools and the budget reportedly rolls back a $175 per pupil decrease in education funding from last year. Instead the per pupil allocation is increased by another $65, the report states. Additionally, revenue sharing for local government will not be decreased.  

Governor Whitmer commented on the budget, “Saying that the development of the 2021 budget has been difficult would be an understatement, but I am very proud that we’ve been able to work together with the Legislature to put together a budget that moves Michigan forward.” 

Increasing the per-pupil aid while maintaining the foundation allowance for students alongside other funding for improvements to study distance and virtual learning, mental health grants and teacher retention stipends for those serving their first year during the current school year were partly funded through a balance in the school aid fund.  

“I’m extremely excited that we were able to do that,” Sen. Jim Stamas, chair of the Senate Appropriations Committee said. “It makes me nervous for next year coming up, but at the same time we’ll take each year as we go.”  

To further explore the implications of this year’s budget, the MICPA will be hosting a State Budget Round Table with Sen. Stamas on Tuesday, October 13 at noon. MICPA members are invited to register for the free Zoom event in advance. 

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Source: MICPA

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