Northwest Wayne News

After the COVID-19 pandemic left a hole in the state’s revenue stream, Michigan has responded with $2.2 billion in cuts that will delay road and bridge work, as well as limiting efforts at environmental cleanup.

Earlier projections had anticipated revenue to come up short by around $3.2 billion, according to reporting by Bridge Michigan. 

Yet enhanced medical payments from the federal government left the state with $788 million in leftover funds. The state also pulled approximately $350 million from its Budget Stabilization Fund, bringing the total shortfall down by approximately $1 billion in total, but leaving only $836 million in the rainy day fund.

To shore up the remaining $2.2 billion, cuts by the state included $4.8 million dropped from spending on PFAS and lead remediation, $13 million cut from roads and bridges, and $2.5 million cut from Healthy Michigan, according to Bridge Michigan.

The budget compromises reached with cooperation among the state Senate, state House and Gov. Gretchen Whitmer’s administration will enable Michigan to have a balanced budget through September. But there is another $3 billion budget shortfall waiting around the corner in the next fiscal year.

Bridge Michigan reported that schools and local governments did well in the end, but only because of federal funding intended for coronavirus relief.

“Every budget is a statement of priorities. In the face of unprecedented and unforeseen challenges within 2020, the budget agreement before you reflects our shared commitment to schools, local government and everyone affected by COVID-19,” said Sen. Jim Stamas, (R-Midland), chair of the Senate Appropriations Committee, on the Senate floor, according to Bridge Michigan.

Federal coronavirus relief was also used to cover some state expenses, such as $475 million that Whitmer used to cover costs for state police and the department of corrections.