The Fiscal Year 2025 state budget was passed on June 27 and includes several investments that will support Michigan’s business community. Below is a summary of budget items important to the business community and that align with the Detroit Regional Chamber’s policy priorities.
Update: The Governor officially signed the budget on July 24, 2024.
Talent
- MichAuto will receive $2 million to grow its initiatives to develop and keep young high-skilled talent in Michigan to support the high-tech careers shaping the automotive and mobility industry’s evolution.
- A $30 million increase in the Michigan Achievement Scholarship with the Michigan Guarantee will expand postsecondary opportunities for students and progress the state toward its goal of 60% postsecondary educational achievement by 2030.
- This increased investment will ensure every Michigan high school graduate can receive a tuition-free associate degree or skilled certificate at a community college, a positive step toward a “K – 12 + 2” approach to education.
- $52 million for continued support for Michigan Reconnect, which provides a tuition-free pathway to adult learners 25 and older.
- $45.5 million to support Michigan’s current and future workforce needs and population growth, including specialized economic assistance to businesses locating or expanding in Michigan to meet their talent and workforce needs, develop customized solutions to fill identified talent gaps, and grow Michigan’s population.
Growing Michigan’s Economy
- $500 million will go toward continued investments in the Strategic Outreach and Attraction Reserve (SOAR) fund.
- $10 million will help fund minority-owned businesses grants.
- $60 million will help establish a Michigan Innovation Fund to provide better access to capital for startups and bolster the state’s innovation ecosystem.
- This budget did not include a tax increase, and several fee increases were not included.
Community
- $100 million will go toward growing the housing stock with increased investment in housing programs.
- This budget provides ongoing support for state and local road and bridge improvements and maintenance.
- Many investments are planned for placemaking and community assets such as transit, quality water infrastructure, and safe neighborhoods.