This week, before lawmakers went on their annual two-week Spring Break, the Legislature and Governor agreed to a historic infrastructure investment supplemental budget which invests $4.7 billion in long-neglected infrastructure including water infrastructure, dams, roads and bridges amongst other areas.
The Legislature and Governor have found themselves in a unique position. There is more money available to the state coffers than they know how to spend. Much of the unprecedented funding is coming from the federal government in various forms. Of the $4.7 billion, $3.1 billion is from federal Coronavirus-related funds that were authorized through the various federal acts in an effort to support the economic recovery of individuals, families, and businesses struggling with the effects of the pandemic. Another $945.5 million was appropriated from the federal Infrastructure investment and Jobs Act. The final revenue source that the supplemental draws from is the state’s general fund, which has seen unexpected revenue increases from Michigan residents and businesses throughout the pandemic. A total of $571.6 million is appropriated from the general fund for a variety of areas.
This is by far the most significant investment by the state towards our underground infrastructure ever. In total, there is over $650 million allocated for stormwater and wastewater construction and over $800 million in drinking water infrastructure to be used for drinking water improvements including lead service line replacement, water main improvements, and water treatment plant upgrades. There is also $66 million to improve stormwater pumping stations servicing state trunkline highways.
The Legislature will return to session after the two week break to finalize the overall state budget. With higher than expected revenues, nearly $3 billion still available in flexible Covid relief money, and this being an election year, the budget process should be relatively easy. MITA will continue to fight for every dollar on the table available as much more needs to be done. If you have any questions or concerns, please feel free to contact Rob Coppersmith, Executive Vice President, at robcoppersmith@thinkmita.org, or Lance Binoniemi, Vice President of Government Affairs, at lancebinoniemi@thinkmita.org. They both can be reached at 517-347-8336.
