$10 billion headed to Michigan from federal stimulus package
(The Center Square) – Michigan will net more than $10 billion from the most recent $1.9 trillion stimulus package signed into law by President Joe Biden.
That’s broken down:
$5.6 billion for state government$1.7 billion for metro cities$1.9 billion for counties
State and local governments are awaiting federal guidance of spending restrictions.
Roughly $51 million is going to Lansing, which has a population of 117,000. City of Lansing Finance Director Robert Widigan called the bill’s passage “an essential lifeline to the City of Lansing in a time in which the City is balancing its vital role in sustaining public health against the economic challenges of reduced local tax revenue and state support.”
After the COVID-19 pandemic began, Lansing slashed planned spending by $12.5 million.
“While the City took immediate action to reduce administrative spending where possible, this funding will ensure major City programs and support for basic human services can continue throughout the economic downtown,” Widigan told The Center Square in a email.
Lansing Mayor Andy Schor will present his budget recommendation to the City Council in a March 22 meeting.
Roughly $879 million is allocated to Detroit, which breaks down to roughly $1,300 for every resident. Detroit’s media relations director John Roach said they are awaiting federal guidance for spending so they can develop priorities.
Detroit is getting the fifth-most money in the nation for cities, preceded by New York, Chicago, Los Angeles and Philadelphia.
Roughly $95 million is allocated to Grand Rapids. Chief Financial Officer Molly Clarin said the city is evaluating how to allocate the award expected to be paid out over the next two years.
“Approximately half will go toward income tax relief so there will be no reductions in services provided to the community,” Clarin told The Center Square in an email. “The rest will be balanced among initiatives for economic recovery and providing assistance locally. We will be discussing this as part of the FY2022 budget process which will be presented to commission April 27.”
Community leaders can’t spend the money on pension debt. Governments can spend the money upgrading infrastructure, on hazard pay, on curtailed services, or other downtown improvements, but must spend the money by 2024.
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