UP Gazette

Sen. Wayne Schmidt (R-Traverse City) shared his updates on overcoming the budget deficiencies in the state of Michigan on MiSenateGOP. 

The Legislature passed a set of supplemental budget bills — a bipartisan effort — aimed at reconciling the $2.2 billion deficit by making spending cuts, hiring freezes and using a part of Michigan’s rainy day fund. In addition to these measures, the bills also route federal funds to areas like education and some other vital fields that have suffered greatly from the COVID-19 pandemic.

“While we have not seen eye-to-eye with the governor on many issues over the last several months, I am proud that we were able to come together on a bipartisan solution to help balance this historic mid-year deficit, all without raises taxes,” Schmidt wrote, according to MiSenateGOP.

Sen. Wayne Schmidt | #MiSenateGOP

Before taking the vote, the mid-year deficit was reaching record levels, but the bills that were recently passed will ensure that the money that's available is going to those who need it most. 

The bipartisan bill is saving roughly $936 million, a result of cutting state expenditures and directing the federal funds where they are most needed, Schmidt reported.

“In addition to cutting back state funding, these bills use federal money to help schools offset costs associated with responding to the coronavirus, as well as help prepare teachers, parents and students for the future of education in Michigan,” Schmidt wrote on MiSenateGOP. 

The education expenditure changes will direct an additional $175 per student to help the schools respond, in the most effective manner possible, to changes brought about by the virus. 

Teachers will be given an additional $500 bonus pay to help them overcome the challenges of this time and to help recognize their dedication. 

“With the 2020 deficit now behind us, we now move on to putting together a responsible and balanced budget for fiscal year 2021, which currently is projected to have a shortfall of over $3 billion due to the impact of COVID-19,” Schmidt told his constituents on MiSenateGOP.