LANSING, Mich. — Sen. Roger Victory on Wednesday supported measures to resolve a $2.2 billion deficit in the current fiscal year through spending cuts, hiring freezes and using a portion of the state’s “rainy day fund.” The actions also direct federal COVID-19 relief funds to education and vital services that were hit hardest by the virus.
“The COVID-19 pandemic has had a tremendous impact on our families, communities and economy. As a result, it’s also had a huge effect on our state budget,” said Victory, R-Hudsonville. “I am proud we were able to come together on a bipartisan solution that uses available federal funding to help balance a historic mid-year deficit while protecting hardworking Ottawa County families and students — all without raises taxes.”
The Senate Appropriations Committee approved an executive order from the governor to reduce current-year spending. As part of a bipartisan agreement, most state agencies will see reductions, including the executive and legislative budgets.
Under the agreement, the state will save $936 million in fiscal year 2020 by reducing spending and other cost-saving measures. The budget plan also uses $350 million from the state’s rainy day fund to support funding for critical programs.
With passage of two supplemental budget bills, the state will have directed over $3 billion in federal Coronavirus Relief Funds to schools, communities, job creators, workers and families for costs resulting from the pandemic, including:
• $555 million for schools;
• $200 million for universities and community colleges; and
• $350 million for local governments.
“This agreement places nearly all of the shortfall on the state and protects critical support for our local governments and our schools,” Victory said. “We still face challenges ahead, but this responsible budget solution illustrates that we can work together to solve big issues while protecting families and job creators.”
Senate Bill 373 and House Bill 5265 will be sent to the governor to be signed after being finalized by the House.