The state of Michigan, like many states, is going to need major help from the federal government if it’s going to weather a budget storm headed its way in the next couple of months. So says Michigan Budget Director Chris Kolb, who spoke with Governor Gretchen Whitmer Tuesday about current needs. Kolb noted state lawmakers managed to resolve a more than $2 billion shortfall on the current year’s budget by the skin of their teeth.
“Federal funding was key to balancing our current fiscal year budget, but now that federal funding is gone, and fiscal year 21 is staring us straight in the face,” Kolb said. “W have just two short months to address fiscal year 21.”
Kolb said more than 90% of the state General Fund and School Aid Fund is used to support education, local governments, public safety, and healthcare.
“There is very little left to cut from state government without impacting essential services and programs.”
Kolb warned of a shortfall in the billions for the coming fiscal year if Congress doesn’t send aid to the states. He echoes Governor Whitmer’s statements about a Senate coronavirus relief bill being inadequate.