How will the state budget lower costs for Michigan residents?
(CBS DETROIT) - Gov. Gretchen Whitmer worked with legislators to pass the state budget for the 2024 fiscal year, which focuses on growing the economy and lowering costs for Michiganders.
The budget will continue to increase affordability for residents in ways similar to how the retirement tax on seniors was rolled back and increased the Working Families Tax Credit earlier this year with the Lowering MI Costs Plan.
"I am proud of the $1 billion tax cut we've secured for seniors and working families," said Whitmer. "Right now, families are facing the pinch and having tough conversations about how to make ends meet. These investments will help people pay the bills, put food on the table, and afford essentials like groceries and school supplies. It will ensure seniors can keep more of what they've earned over a lifetime of hard work and put money back in the pockets of 700,000 working families."
Here are some of the key figures from the 2024 state budget:
- $10,000 a year in savings for families with Pre-K for All.
- 5,600 free pre-K slots open this fall, with thousands more to come in the years ahead.
- $1,000 a year average savings from retirement tax rollback
- 500,000 households will benefit from rolling back the retirement tax.
- $3,150, the new average refund from the Working Families Tax Credit, several hundred dollars higher than it was.
- 700,000 families will receive the Working Families Tax Credit.
- 26,000 families will be lifted out of working poverty with the Working Families Tax Credit.
- 50% of Michigan's children live in households receiving the Working Families Tax Credit.
- $2,000 a year in savings on essential medical services with an expansion 'Plan First!.'
- 25,000 Michiganders will benefit from health care savings under the Medicaid Plan First! Program.
- $850+ a year per student savings with free breakfast and lunch in school.
- 350,000 more Michiganders eligible for tuition-free associate degree or skills certificate with expansion of Michigan Reconnect from 25 to 21 years old.
- $4.9 million over 2 years for Double-Up Food Bucks, boosting access to fresh fruits and vegetables for Michiganders on food assistance.
- $212 million for residential energy efficiency improvements through federal funds, lowering costs for Michiganders via point-of-sale rebates for home appliances, water heaters and more.
The goal of this budget is to lower costs for Michiganders in a variety of areas, such as higher education, child care, health care, banking fees and prescription drugs.