In Budget, News Releases, Tax and Budget

For Immediate Release
July 22, 2020

Contact:
Alex Rossman
arossman@mlpp.org
Cell: 517-775-9053

Bipartisan cooperation, CARES Act funding soften difficult but necessary 2020 budget agreement

More federal action and new state revenue needed to avoid devastating cuts in 2021 and beyond

LANSING—The Michigan League for Public Policy issued the following statement on the 2020 state budget agreement announced today. The statement can be attributed to Michigan League for Public Policy President and CEO Gilda Z. Jacobs.

“We can’t wish or will this fiscal crisis away any more than we can COVID-19. But in both cases, we can and must do what we can to lessen its impact on our state and its people. The severity of the COVID health crisis and the related budget crisis, along with the urgency of the timing in the fiscal year, left little options for 2020. We are glad that a bipartisan budget agreement was reached and there was a concerted effort to do as little harm as possible, but this agreement hinges significantly on federal CARES Act funding, which has all but dried up with today’s action.

“It takes courage and leadership to make tough decisions. In 2021 and the fiscal years ahead, policymakers can either exercise that courage and leadership in making difficult and damaging budget cuts or in tackling the other, more neglected side of the problem—new revenue. As the state finishes up action to reconcile the 2020 budget today, all eyes turn to fixing the $3 billion budget deficit in the 2021 budget. In doing so, we strongly urge Congress to pass more federal funding with greater flexibility, including the HEROES Act, and we strongly urge the Michigan Legislature to look at new revenue options that bring more money into the state while better balancing tax fairness and equitable state spending in the process.”

BACKGROUND:

League OpEd: Time for US Senate to step up on HEROES act for COVID-19 relief

League Report: COVID-19 highlights the need for more state revenue

Center on Budget and Policy Priorities Report: More Relief Needed to Alleviate Hardship (See Appendix for State-Specific Data on Food Security, Rental Housing Needs, and Unemployment)

Families USA Report: The COVID-19 Pandemic and Resulting Economic Crash Have Caused the Greatest Health Insurance Losses in American History
(State Coverage: Michigan ranks 6th for adults stripped of health care during pandemic)

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.

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