Detroit City Wire

Michigan Republicans have come to an agreement with Gov. Gretchen Whitmer to fix a more than $2 billion hole in the state’s budget, Bridge Michigan reported.

The new budget deal was announced on June 29 and will help resolve a gap in the state’s budget that accounts for $2.2 billion. The remaining assistance from the CARES (Coronavirus Aid, Relief and Economic Security) Act will be used to fill the budget gap. 

Many businesses and local players in the Michigan economy have suffered since the state’s shutdown due to COVID-19, and this deal is an example of bipartisan cooperation, aimed at a better future. 

Whitmer, House Speaker Lee Chatfield (R-Levering) and Senate Majority Leader Mike Shirkey (R-Clarklake) issued a joint statement emphasizing that Michigan families, school and communities will now have the funding that they need during a challenging time. 

Details of spending cuts have yet to be released, but Whitmer and the Republican legislators said that $490 million will be saved by pausing hiring and discretionary spending and having some layoffs in the state’s government. 

There will be $512 million directed towards K-12 schools, $200 million to universities and community colleges, $150 million to local governments and $53 million for hazard pay for teachers, many of whom feel they are risking their health to return to the classroom. 

While there is some relief that the $2.2 billion hole is smaller than what was expected -- $3.2 billion had been projected in May -- there is still work to be done to ensure that the state recovers from the economic crisis. 

Senate Republicans are pushing for economic responsibility as the state attempts to come back after being shut down for months. 

The deal still will leave $94 million in unspent federal relief funding. Whitmer is hopeful that the federal government will lend more assistance to Michigan’s local governments in the wake of the challenge.

This agreement comes after months of animosity between Whitmer and the Republican congressional leadership over the governor’s handling of various issues related to the coronavirus pandemic.