Downriver Today

Michigan’s state budget for the current year is continuing on a trend of exorbitant spending that began back in 2018-2019, Michigan Capitol Confidential reported.

During fiscal year 2018-19, the final year before the COVID-19 pandemic began impacting the state's needs, federal funds for the Michigan state budget were $23.2 billion.

For the 2019-20 fiscal year, which ended on Sept. 30, Michigan received and spent $33.7 billion in federal funds, which translates to a 45% increase over the previous fiscal year. This was the year in which the pandemic began, so the higher budget is a logical result. 

The 2020-21 state budget for Michigan includes $25.7 billion in federal funds, and Gov. Gretchen Whitmer, who has been the target of much criticism from conservatives about her response to COVID-19, has proposed adding more than $28.4 billion in federal transfers, which would be 22% higher than pre-pandemic levels.

Important to note is the fact that the $25.7 billion does not include extra money that could potentially come from a large federal stimulus program, which congressional Democrats are trying to get passed. According to one draft, an additional $5.7 billion could be spent this year by Michigan lawmakers if the stimulus money comes through.

It's easy to recognize the trend in rising spending and increasing budgets in Michigan. In fiscal year 2007-08, federal funds in Michigan increased from $14.7 billion to $21.1 billion in fiscal year 2008-09, which marks a 44% increase. That level of increase was due to the American Recovery and Reinvestment Act, brought about by former President Barack Obama. The stimulus measure was passed by Congress in response to the 2008 recession and consisted of billions in tax cuts, credits and unemployment benefits for American families.