President Obama unveiled his $3.8 trillion proposed budget for next year on Monday and, if it were to pass in its current form, Michigan’s budget crisis might be a little easier to fix. The Detroit News reports that the proposed budget includes new funding for Michigan to help with Medicaid and school aid.
One of the best bits of news for the state is that the president is seeking an extra $500 million for Michigan to help it shoulder its increase in Medicaid enrollees because of the disastrous economy. One out of six Michigan residents are on Medicaid — 1.7 million people.
The Office of Management and Budget said 3.7 million Michigan families would see tax cuts; $1.8 billion would be targeted to schools, students and teachers; and $1.5 billion would be directed to repairing roads, modernizing airports and expanding sewers.
Given the massive increase in the number of Michigan residents in need of Medicaid and the recent cuts to state aid for local schools, those appropriations would help the state enormously as it faces a $1.8 billion shortfall for the next fiscal year.