Michigan State Government Swimming In Money, A Lot Of It Federal

Total spending by Michigan’s state government has soared during the COVID-19 pandemic, in large part due to the injection of billions of federal dollars.

For the 2018-19 fiscal year that began Oct. 1, 2018 - the last full fiscal year before the pandemic - state lawmakers approved $58.340 billion in spending, including money from both state taxpayers and the federal government.

The pandemic arrived about five months into the next state fiscal year, 2019-20. The total 2019-20 state budget increased to $67.172 billion, including the federal dollars.

If not for the previous year’s increase in federal funding, Michigan’s 2020-21 budget of $61.564 billion would be setting a new record. Instead it’s a reduction, even though spending will still be $3.2 billion higher than it was in the last pre-pandemic budget.

It’s actually the first decline after an eight-year streak of annual state spending increases. The last time total state spending did not increase was the 2011-12 fiscal year.

The overall state budget was $47.598 billion in 2011-12. When adjusted for inflation, that budget was equivalent to $55.761 billion in current dollars, which is $5.8 billion less spending than the current budget.

The data comes from the Senate Fiscal Agency.