LANSING – Governor Rick Snyder on Wednesday proposed two bonds to be included in the Michigan Strategic Fund budget, one which develops engineering talent at universities with those programs and the other to address talent needs in skilled trades through community colleges.

Overall, Snyder recommended $766.6 million ($210.3 million General Fund) for the Michigan Strategic Fund, which also includes the Michigan State Housing Development Authority, and is responsible for economic development, workforce development, and community revitalization.

The Engineering Talent Investment Program would allow universities with accredited engineering programs to compete for $100 million in bond funds for capital improvements. The goal of the program is to enhance the state’s workforce talent by increasing the number of engineering students while ensuring they stay in the state, Snyder’s budget summary noted. An annual debt service appropriation of $7.9 million in General Fund money is included to support the initiative.

Snyder similarly extended that opportunity to community colleges, recommending a $50 million community college skilled trades equipment program to re-tool community colleges with the latest equipment to help deliver more modern, informed graduates. Community colleges participating in the program must demonstrate employer demand within their prosperity region, the summary said, and an annual debt service appropriation of $4.6 million General fund is included to support the initiative.

Snyder recommended continuing the controversial film incentive program with $25 million in ongoing General Fund revenues. That’s down from the $50 million in the current year budget, which tends to be an advocacy point from Senate Majority Leader Randy Richardville (R-Monroe) for the last two years.

Snyder also proposed adding a $2 million General Fund appropriation to support arts and cultural programs in local communities, marking the third year in a row that a governor has proposed an increase to that portion of the budget. It would be the first time since the 1990s that that’s happened, Rich Homberg, president and CEO of Detroit Public Television said in a statement.

Snyder also suggested an a $5 million one-time General Fund investment to support the newly created Automotive, Engineering and Manufacturing Technology Fund for the global marketing of the state’s automotive sector and public-private collaborations, such as pilot projects in supply chain management and logistics.

Overall, $1 billion of the Department of Treasury’s budget is going toward economic and workforce development. Nearly half of that ($455 million) will go toward workforce development, with the next greatest amounts going toward the Michigan State Housing Development Authority ($238 million); other economic development programs ($165 million); business attraction and community revitalization ($139 million); and finally economic program support ($23 million).

LARA: The Department of Licensing and Regulatory Affairs would see a slight increase overall if Snyder’s budget proposal is approved as written, which provides the department with $531.86 million (about $25 million General Fund). The proposal represents a 5.8 percent increase (0.1 percent increase General Fund).

Snyder proposed $1.1 million for the Bureau of Construction Codes to streamline permitting processes, monitor safety standards on construction sites, and help the Detroit Land Bank Authority to expedite demolition of blighted buildings in the city, which is a major initiative for Detroit Mayor Mike Duggan.

Another highlight of the LARA budget is $2.4 million in one-time state restricted funding for the development of a software application that will allow Unemployment Insurance Agency claimants to file claims remotely via mobile devices.

Snyder also proposes $700,000 for “process engineering efforts” to improve state government programs, the recommendation notes.

INSURANCE AND FINANCIAL SERVICES: The governor recommended $65.3 million gross to Department of Insurance and Financial Services ($150,000 General Fund), down 13.3 percent total (98.6 percent General Fund) from last year.

The biggest difference is that the governor did not include additional appropriations for the Autism Coverage Fund as it still has $25 million available to reimburse additional claims. Last year, it was discovered in the Department of Licensing and Regulatory Affairs budget discussions that very few claims had been made.

The only General Fund appropriation will be directed to paying for an analysis of the impact of the Medicaid expansion – known as Healthy Michigan – on private market insurance rates.

Nearly half of DIFS’ total funds will go toward financial institutions and insurance evaluation, followed by slightly less than one-quarter (21 percent) for department services, and the rest split between insurance consumer finance licensing (16 percent) and enforcement and consumer protection (14 percent).

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