Part of the money, Whitmer said, could be taken out from the state’s $3.5 billion surplus fueled by federal stimulus aid.
To raise wages, Whitmer said the state will use the money to create grants for businesses to cover the difference between the current salary offered and the proposed $15 an hour favored by Whitmer and Democrats but is generally opposed by Republicans and the business community.
Michigan’s minimum wage currently stands at $9.65.
The Whitmer wage grants would last three months, and participating businesses would have to pledge to retain the employees and the wages for at least three more months after the grant period ends.
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Lansing Michigan has about $2 billion more in revenue than initially expected for this fiscal year, state fiscal leaders concluded Friday, thanks in large part to federal stimulus dollars and increased consumer spending on goods.
Budget experts also adjusted expected revenue for the fiscal year 2022 budget upwards from January estimates by $1.5 billion at the Consensus Revenue Estimating Conference. There has just been an incredible amount of federal income support over the past 13 months, and that’s played a big role in our forecast, said Jim Stansell, senior economist for the House Fiscal Agency.
The meeting came a day after the GOP-led Legislature and Gov. Gretchen Whitmer agreed to begin working together on the state budget and distribute billions of dollars in federal COVID-19 relief funding, some of which dates back to December.
Senator compares Enbridge suit aid to wrongful imprisonment law
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Lansing Michigan Senate Republicans adopted a budget amendment Wednesday requiring the Department of Natural Resources to reimburse Enbridge s legal fees if the state loses its challenge to the Canadian company s easement for Line 5 through the Straits of Mackinac.
Senate Appropriations Chairman Jim Stamas, R-Midland, compared the policy to the state s Wrongful Imprisonment Compensation Act, which allows those who were wrongfully convicted of crimes to seek money from the state. Stamas said the state had paid tens of millions of dollars to the inmates. This is very similar to what the state faces also with wrongful imprisonment, Stamas said.
The plan will pump money into several bipartisan priorities, including $110 million for vaccine distribution, more than $1 billion for schools, $150 million for a pay raise for direct care workers and $283 million for an emergency assistance program for families struggling to pay rent and utilities during the pandemic.
But small businesses hit hard by the pandemic will not get any relief after Whitmer vetoed $405 million in business tax and fee breaks proposed by the GOP-led Legislature, which rejected her earlier proposal for $225 million in business grants.
“The bills I received were not negotiated with me or my administration, and I continue to call on the Legislature to ensure that we work together to ensure we maximize every penny that is available,” Whitmer said in a statement.
Lansing A business owned by Michigan Senate Majority Leader Mike Shirkey has been approved for $1.7 million more in federal assistance as Democrats argue that he s not moving quickly enough to sign off on COVID-19 aid provided to the state as a whole.
Shirkey, R-Clarklake, is the owner and founder of Orbitform, a Jackson-based engineering business, according to his Senate website. The U.S. Small Business Administration authorized a $1.7 million loan for Orbitform through the Paycheck Protection Program on Jan. 21, according to data disclosed by the agency.
Orbitform received a $1.8 million loan in April 2020 through the program, which provides money to help businesses keep their workers employed during the COVID-19 pandemic. The loans can be forgiven if employee and compensation levels are maintained.