tLANSING — Gov. Rick Snyder Tuesday signed legislation enacting Michigan’s fiscal year 2013 budget, that invests in key priorities and helps ensure the state’s long-term stability. This is the second year in a row that the governor and his legislative partners delivered a structurally balanced budget in advance of the fall deadline.
t“This balanced, thoughtful and timely budget ensures that taxpayers get value for their money,” Snyder said. “It continues the sound financial principles we adopted last year that now allow us to make strategic investments in our state’s future. We’ll be a stronger Michigan because of it. Let’s build on this achievement by moving forward with relentless positive action so that Michigan becomes a national model of job creation, innovation and prosperity.”
tSnyder commended Senate Majority Leader Randy Richardville, House Speaker Jase Bolger, Senate Appropriations Committee Chairman Roger Kahn and House Appropriations Committee Chairman Chuck Moss for their leadership in delivering a strategic, fiscally responsible budget.
tHighlights of the 2013 budget include:
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- tt A total budget of $49 billion in state and federal revenue sources, with more than 75 percent devoted to education and health and human services.
- ttA deposit of $140 million to the Budget Stabilization Fund (rainy day fund) that brings the fund balance to $504.9 million, the largest fund balance in more than 10 years. The balance was just $2.2 million in 2010.
- ttPersonal income tax relief that reduces the income tax rate from 4.35 percent to 4.25 percent effective Oct. 1, ahead of the originally scheduled date of Jan. 1, 2013. The personal exemption will increase from $3,700 per person to $3,950 per person on Oct.1.
- ttSupport for cities, villages, townships, and counties with nearly $1.1 billion through revenue sharing payments and local government incentive programs.
- ttAn increase in the rate paid to foster parents and adoptive parents by $3 per day to pay for basic living expenses for foster and adopted children, encouraging and supporting permanent placements, and aiding the recruitment of foster and adoptive parents.
- ttAdded funding for child welfare staffing to provide an additional 577 full-time employees for child welfare services within the Department of Human Services.
- ttA total of $59.9 million to support low-income home heating assistance to ensure heat for families and individuals in need during the winter months.
- ttA 3 percent increase in funding for community colleges and universities with performance metrics that keep college tuition down.
- ttAn overall increase of $200.5 million in K-12 education funding when compared to current spending, with performance funding and best practices included.
- ttEquity payments totaling $80 million for school districts with the lowest foundation allowances, raising the foundation floor from $6,846 per pupil to $6,966 per pupil and further closing the gap between the lowest and highest foundation allowance districts.
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tFor more information visit http://www.michigan.gov/.
