- Early forecasts suggest that Michigan may face up to a $7 billion revenue shortfall over the next two fiscal years due to COVID-19.
- Because Michigan is required to deliver a balanced state budget, the state may be forced to make devasting cuts to the state’s vital services, including education, public health and public safety if Congress doesn’t act.
- Congress has the ability to provide greater flexibility to states in the use of CARES Act relief, as well as, providing additional direct support to state and local governments facing significant revenue shortfalls.
LANSING, Mich., May 13, 2020, — State Rep. Jon Hoadley (D-Kalamazoo) sent a letter to members of Congress today, urging them to take swift action to preserve the well-being of the people of Michigan and the services they rely on each day. While the actions the state has taken to slow the spread of COVID-19 have proven to be successful, initial forecasts suggest that Michigan may face up to a $7 billion revenue shortfall over the next two fiscal years due to the pandemic. Without additional support or flexibility from the federal government, Michigan may need to make cuts to its largest and most important services, including education, public health and public safety.
“We can’t have a strong recovery for our state and hometowns if DC lets the states go bankrupt,” said Hoadley, who serves as the Minority Vice Chair of the Michigan House Appropriations Committee. “The devastating impact of this pandemic is unprecedented, but it will only continue to get worse if Michigan is forced to end vital services to the families of our communities because the federal government chose not to act. Our country has it in our power to stop the long-term ripple effect of this crisis, but only if Congress has the courage to set partisanship aside and do what’s right for the people of our state.”
Unlike the federal government, Michigan law requires that the state deliver a balanced budget each year. Without action from the federal government to help avert Michigan’s impending budget crisis, many of the essential public service workers that continued to serve communities throughout this pandemic, like police and firefighters, nurses, teachers, corrections officers, child and direct care providers, and others will be at risk of losing their jobs due to the loss of revenue.
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