Detroit City Wire

The Fiscal Year 2025 state budget, passed on June 27, includes several investments aimed at supporting Michigan’s business community. The budget aligns with the Detroit Regional Chamber’s policy priorities and focuses on talent development, economic growth, and community support.

MichAuto will receive $2 million to expand its initiatives for developing and retaining young high-skilled talent in Michigan. This effort is intended to support the high-tech careers driving the automotive and mobility industry’s evolution.

A $30 million increase in the Michigan Achievement Scholarship with the Michigan Guarantee will expand postsecondary opportunities for students. This investment aims to progress the state toward its goal of 60% postsecondary educational achievement by 2030. The increased funding will ensure that every Michigan high school graduate can receive a tuition-free associate degree or skilled certificate at a community college, advancing a “K – 12 + 2” approach to education.

An additional $52 million is allocated for continued support of Michigan Reconnect, which provides a tuition-free pathway for adult learners aged 25 and older. Moreover, $45.5 million is designated to support Michigan’s current and future workforce needs and population growth. This includes specialized economic assistance for businesses locating or expanding in Michigan, developing customized solutions to fill identified talent gaps, and growing Michigan’s population.

To grow Michigan’s economy, $500 million will be invested in the Strategic Outreach and Attraction Reserve (SOAR) fund. Additionally, $10 million will fund grants for minority-owned businesses, while $60 million will establish a Michigan Innovation Fund to provide better access to capital for startups and bolster the state’s innovation ecosystem. Notably, this budget does not include any tax increases or fee hikes.

In terms of community support, $100 million is allocated to grow the housing stock through increased investment in housing programs. The budget also provides ongoing support for state and local road and bridge improvements and maintenance. Investments are planned for placemaking and community assets such as transit systems, quality water infrastructure, and safe neighborhoods.