Michigan Strategic Fund
The Michigan Strategic Fund, which includes the Michigan State Housing Development Authority, is responsible for economic development, workforce development and community revitalization across Michigan. The governor’s proposed budget for fiscal years 2016 and 2017 recommends total ongoing funding for the Michigan Strategic Fund of $963.7 million, of which $183.7 million is general fund. The governor also recommends $42.9 million in one-time funding in fiscal year 2016.
Highlights of Governor’s Budget Recommendation
• The governor’s budget invests a total of $129 million to grow Michigan’s economy through business attraction and community revitalization efforts. This total includes $111.1 million on an ongoing basis, as well as $17.9 million of one-time general fund to fuel business and community development projects throughout the state. Governor Snyder’s approach to business attraction has been fiscally prudent with incentive programs now funded annually in the budget ensuring fiscal certainty.
• Reflecting the governor’s focus on skilled trades, $10 million is maintained for the skilled trades training program. Additional investments in the Department of Licensing and Regulatory Affairs budget add $10 million for this program, for a total of $20 million between the two agencies. The Executive Budget also maintains $426 million for workforce development programs.
• The Executive Budget maintains funding for the film incentive program at $50 million.
• The Executive Budget includes $238 million for the Michigan State Housing Development Authority, and maintains $4 million general fund support for the Land Bank Fast Track Authority to aid in the redevelopment of tax-reverted properties.
• Executive Order 2014–12, effective March 15, 2015, creates a new Department of Talent and Economic Development. The new department will include the Michigan Strategic Fund and the Michigan State Housing Development Authority, as well as a new Talent Investment Agency which will merge workforce programs with the Unemployment Insurance Agency presently within the Department of Licensing and Regulatory Affairs. An Executive Budget Revision will be forthcoming after the executive order takes effect to restructure the budget for the new department.