Michigan Budget Proposal Focuses on Job Creation, Workforce Training

Gov. Jennifer Granholm's FY10 budget includes increased funding to support programs aimed at job creation in emerging fields and maintains level funding for year three of an initiative to train displaced workers for in-demand careers.

The executive budget unveiled last week provides $1.4 billion in total funds for the newly reorganized Department of Energy, Labor and Economic Growth, with nearly half dedicated for workforce training. Gov. Granholm signed Executive Order 2008-20 in October, consolidating all activities related to the energy sector into the Department of Labor and Economic Growth. Energy programs and regulation are funded at $123 million in the FY10 budget proposal, which includes funding for an initiative to train workers for green jobs.

The governor recommends level funding ($15 million) for the No Worker Left Behind Initiative, a program that provides financial assistance for training programs or up to two years' tuition at any Michigan community college or university for training in high-demand occupations. When established in 2007, the governor outlined the program's ambitious goal to train 100,000 workers in three years. In August, the governor's office reported that 11,000 participants had completed training (see the Aug. 6, 2008 issue of the Digest).

The Michigan Strategic Fund, administered by the Michigan Economic Development Corporation, is slated to receive $163.7 million in FY10, an increase of $11.1 million over last fiscal year. The 21st Century Jobs Fund would receive $75 million - up from $65 million approved in FY09. This fund supports job creation in emerging fields such as renewable energy, life sciences, homeland security and advanced manufacturing by investing in basic research at universities and providing access to capital.

Faced with a proposed 3 percent reduction in their operating budgets, the state's 15 universities are asked to freeze tuition for the next academic year. Gov. Granholm also proposed combining the Michigan Agriculture Experiment Station, which supports the research projects of more than 300 scientists at Michigan State University, and the Cooperative Extension Service. Funding for the programs would be cut in half under the proposal, according to The Detroit News. Community colleges are spared from cuts in FY10, in recognition of their role to provide job training.  

Gov. Granholm's FY10 budget proposal and related documents are available at: http://www.michigan.gov/budget.