By Staff
LANSING - Gov. Jennifer M. Granholm, Senate Majority Leader Ken Sikkema, R-Wyoming, and House Speaker Rick Johnson, R-LeRoy, today announced that they have reached a budget agreement that protects education priorities and sets aside nearly $200 million in the state's savings accounts.
The governor, Senate Majority Leader and Speaker of the House said the budget agreement is fiscally responsible and that Michigan is one of just a handful of states across the nation to balance its budget without relying on tax increases or excessive borrowing.
Shaffer, a member of the House Appropriations Committee, serves on the FIA, Community Health, Agriculture and Capital Outlay subcommittees.
"Despite these difficult economic times, I'm proud that the Legislature and the governor were able to come together to forge a compromise which reflects common priorities in the best interest of Michigan," Shaffer said.
Under the budget agreement, the Governor and legislative leaders agreed to:
restore pre-school and early childhood education funding to the Governor's budget recommendation of $72.8 million;
place approximately $75 million in an education savings fund for the future;
maintain funding for the state's job creation engine - Michigan Economic Development Corporation;
add $5 million for the Life Sciences Corridor bringing the Life Sciences total to $25 million; and, $10 million in a one-time grant targeted to keeping Pfizer pharmaceutical jobs in Michigan;
maintain Merit Scholarship funding so that each student who qualifies based on MEAP scores will receive $2,500;
initiate funding for a Governor-Speaker technology partnership that will provide laptop computers to 6th grade students across Michigan. Additional federal funds were identified to support the program;
fully fund the increases in FIA and Medicaid caseloads caused by the downturn in the economy;
restore 17 new road projects that will spur more than 6,000 direct jobs while preserving "Fix It First" transportation priorities, so that existing roads continue to be repaired;
provide $50 million in new, mostly federal Medicaid dollars as bridge financing to the Detroit Medical Center under certain conditions that are currently the subject of ongoing negotiations.
Among the additional funds identified by the Governor, Senate Majority Leader and Speaker of the House are audits of the homestead property exemption and personal property tax exemption. Additionally, the Governor and legislative leaders agreed to approve legislation that would increase fines for drivers who repeatedly violate state laws.
"This budget confirms that education is our state's top priority," Granholm said. "The work we do today in Lansing ensures that our children will receive a quality education from age zero through college, and that guarantees that Michigan remains an economic powerhouse for generations to come."
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Heidi Hansen