LANSING – The state’s economic development efforts would continue to receive the same amount of funding as the current fiscal year, but Governor Rick Snyder has added more money for arts and cultural grants under the 2012-13 budget outlined Thursday.
The state’s business and economic gardening program, which replaced a tax credit system under the old Michigan Business Tax, would again receive $100 million through the Strategic Fund.
And the Pure Michigan advertising campaign would still get $25 million, as would the film incentive program.
But general fund support for arts and cultural grants would increase $1.4 million in the current budget to $5 million next fiscal year. The funding is intended to improve “Quality of Place” for local communities, the executive budget documents noted.
With programs like ArtPrize in Grand Rapids, Snyder told lawmakers, “We have seen success. We need to be encouraging that. They do tie back to jobs.”
The Michigan Municipal League and ArtServe Michigan praised the additional funding.
“With the state economy and budget on the mend, it is simply essential to begin making investments that will create the types of competitive places in Michigan where people want to live, work and play,” Dan Gilmartin, executive director and CEO of the League, said in a statement. “Obviously having strong offerings of arts and cultural attractions are critical attributes to places of prosperity. While this is a modest investment, it is at least a start that we applaud.”
Snyder said the Michigan Economic Development Corporation would also continue to focus on connecting talent with available jobs. He said there are 76,000 openings now, but that companies have not found people qualified for those positions.
The budget includes another $15 million for the Talent Fund for Job Training and Skills Development, which would target communities with chronic unemployment problems.
MEDC President Michael Finney said in a video clip about the budget that it provides certainty toe Michigan businesses.
“It creates an environment where businesses are really looking to grow and invest in our state,” he said. “Last year, Governor Snyder made it a focus that we would not go hunting for new opportunities, rather we would look at existing businesses and help them grow. We’re proud of what we’ve done in that regard.”
The Strategic Fund’s overall budget is $710.7 million, of which $128 million comes from general funds.
Business Leaders for Michigan CEO and President Doug Rothwell said in a statement that Snyder’s budget, which includes support for higher education and transportation infrastructure, will promote economic growth in the state.
LICENSING AND REGULATORY AFFAIRS: The budget for the Department of Licensing and Regulatory Affairs totals $827.5 million, with $35.4 million in general funds. It marks a 15.8 percent reduction in general fund spending for the department compared to the current fiscal year.
This percent change reflects the difference in what the administration considers ongoing funding from the 2011-12 fiscal year to ongoing funding for the 2012-13 fiscal year. Some funding items in both years were considered one-time. The administration did not provide sufficient data in its budget book to make an accurate comparison of total funding from 2011-12 to 2012-13.
Budget Director John Nixon said the administration would like a permanent fee on utilities that would support home-heating assistance to the poor and the budget includes $60 million in spending for that program.
Last year, in the wake of a court ruling, the Legislature appropriated one-time monies to fund a home heating program through the winter. Rep. Kenneth Horn (R-Frankenmuth), chair of the House Energy and Technology Committee, has proposed using federal dollars, which were higher than expected, for the program, as opposed to continuing a surcharge on utility bills.
The LARA budget also adds $1.5 million in general funds for Centers for Independent Living.
LARA would also continue the Office of Regulatory Reinvention, which has been reviewing state rules to get a more efficient and effective oversight system in place.
The budget also calls for extending nine fee programs to pay for specific programs.
TREASURY: The Department of Treasury’s budget includes a number of components, including revenue sharing, the Strategic Fund and debt service, as well as its operations. Not accounting for revenue sharing, the budget totals some $1.6 billion in ongoing funds.
Total funding for the operations will be $466.8 million, of which $67.6 million is in general funds.
That section will include $4.5 million for a new office of fiscal responsibility to help local communities in danger of insolvency.
In the $140.6 million debt service provision, the budget proposes using $10 million in general funds instead of money in the refined petroleum fund. That would allow the state to commit that money towards more cleanups, the administration said.
One of the more popular announcements in the budget comes from the Strategic Fund portion of the Treasury budget: a $1.4 million increase in arts and cultural grants to a total of $5 million. The move was greeted with applause from the state’s different arts constituencies.
And the budget calls for $15 million in general funds to help with economic development in the state’s distressed cities.
STATE: A promotional program aimed at increasing the number of people who use the Department of State’s online services will cost the budget $150,000 under Snyder’s recommendation.
The budget also includes $1 million for administration of a federal requirement that commercial drivers prove they are healthy enough to drive. Funding for that program would come from an increase to the commercial driver license fee from $25 to $35.
Overall, the budget totals $219.1 million, of which $13.6 million is general fund. That represents a 15.8 percent general fund increase above current year spending.
This percent change reflects the difference in what the administration considers ongoing funding from the 2011-12 fiscal year to ongoing funding for the 2012-13 fiscal year. Some funding items in both years were considered one-time. The administration did not provide sufficient data in its budget book to make an accurate comparison of total funding from 2011-12 to 2012-13.
LEGISLATURE: The Legislature would get a one-time boost under Snyder’s proposal. The two chambers would split $109.5 million ($108 million general fund). That would represent a 4.7 percent increase overall from the current year, and a 5 percent general fund increase.
But then he recommends holding those amounts steady for 2013-14.
Some of the increase, $250,000, is direct funding to the Legislative Corrections Ombudsman that is currently provided as a grant through the Department of Corrections.
AUDITOR GENERAL: Though technically a part of the Legislature’s budget, Snyder separated out the Office of the Auditor General, and provided it a substantial increase.
The office is recommended to receive $18.4 million, overall about 8.5 percent more than current year. General fund, $12.8 million, represents a 10.3 percent increase. The plan includes $270,900 ($184,800 general fund) for one-time payments to employees not included in the increases.
Part of the reason for the funding change is a recommendation by Auditor General Thomas McTavish that the state change from biennial departmental audits to a single statewide audit for federal programs, a change Mr. Snyder said is consistent with what nearly all other states do. “With this change, the Office of the Auditor General will be able to redirect a significant amount of resources to higher impact audits that will greatly increase state agency accountability and legislative audit ov
