FY 2024-25: LABOR AND ECONOMIC OPPORTUNITY
Summary: As Passed by the House
House Bill 5502 (H-3)
Analyst: Marcus Coffin
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $0 $0 $0 $0 --
Federal 1,183,654,200 1,177,165,800 1,177,165,800 (6,488,400) (0.5)
Local 10,700,000 10,700,000 10,700,000 0 0.0
Private 12,539,200 12,584,600 12,584,600 45,400 0.4
Restricted 358,863,400 413,774,700 352,274,700 (6,588,700) (1.8)
GF/GP 1,301,508,000 359,007,400 525,557,400 (775,950,600) (59.6)
Gross $2,867,264,800 $1,973,232,500 $2,078,282,500 ($788,982,300) (27.5)
FTEs 2,648.9 2,678.5 2,667.5 18.6 0.7
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Department of Labor and Economic Opportunity (LEO) engages in economic development; community growth and
development; affordable housing; tourism promotion; job creation, retention, and training; and workforce development
and preparedness. LEO includes the Michigan Strategic Fund (MSF)/Michigan Economic Development Corporation
(MEDC), Bureau of Employment Relations, Bureau of Services for Blind Persons, Michigan Occupational Safety & Health
Administration (MIOSHA), Workforce Development, Michigan Rehabilitation Services, Office of Global Michigan,
Unemployment Insurance Agency (UIA), Workers' Disability Compensation Agency, State Land Bank, and Michigan State
Housing Development Authority (MSHDA).
FY 2023-24 FY 2024-25
Enacted House
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Michigan Innovation Fund Gross $0 $0
Executive includes $60.0 million of Venture Michigan Fund investment Restricted 0 0
proceeds (one-time) for deposit into a new innovation fund that would GF/GP $0 $0
support startups and make investments that would improve the startup
and innovation ecosystem, including programming, technical
assistance, and other support services. (Note: would require statutory
change to authorize use of Venture Michigan Fund investment returns).
House does not include.
2. Build Ready Sites Program Gross $0 $0
Executive includes $25.0 million GF/GP (one-time) to create GF/GP $0 $0
development-ready sites to attract and promote business investment
throughout the state. House does not include.
3. Business Attraction and Community Revitalization Gross $100,000,000 $20,000,000
Executive includes $20.0 million GF/GP (one-time) to augment existing Restricted 59,350,000 0
$100.0 million in ongoing funds for business development and GF/GP $40,650,000 $20,000,000
community revitalization programs and the expansion of small business
services. House concurs.
4. Michigan Marketing Initiatives Gross $0 $0
Executive includes $20.0 million GF/GP ($15.0 million GF/GP GF/GP $0 $0
considered one-time) for marketing initiatives that focus on talent
attraction, labor retention, and population growth. House does not
include.
House Fiscal Agency 1 5/29/2024
FY 2023-24 FY 2024-25
Enacted House
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
5. Going Pro Gross $54,750,000 $15,000,000
Executive includes $20.0 million GF/GP (one-time) to augment existing Restricted 9,540,800 0
$54.8 million Gross for Going Pro program, which would increase GF/GP $45,209,200 $15,000,000
employer training grants in FY 2024-25. House includes $15.0 million
GF/GP (one-time) for this purpose.
6. Talent Solutions Gross $0 $0
Executive includes $20.0 million GF/GP (one-time) to support initiatives GF/GP $0 $0
providing economic assistance to businesses locating or expanding in
Michigan, specifically around workforce needs. Funding would also
support development of customized talent solutions to help fill identified
needs in certain industries. House does not include.
7. New Michigander - Immigration and Legal Services Gross $0 $0
Executive includes $8.0 million GF/GP (one-time) for immigrant GF/GP $0 $0
integration services that are not provided through the federal refugee
resettlement program. House does not include.
8. Federal Vocational Rehabilitation State Match Gross NA $5,852,600
Executive includes $5.9 million Gross ($1.3 million GF/GP) to increase Federal NA 4,602,600
authorization in the Bureau of Services for Blind Persons ($272,900) and GF/GP NA $1,250,000
Michigan Rehabilitation Services ($5.6 million) to expand vocational
rehabilitation services. House concurs.
9. Community and Worker Economic Transition Office FTE 0.0 10.0
Executive includes $5.0 million GF/GP and authorization for 20.0 FTE Gross $0 $5,000,000
positions for the Community and Worker Economic Transition Office GF/GP $0 $5,000,000
developed in 2023 PA 232. Office goals include ensuring communities,
workers, and businesses are supported in navigating the state's
economic transition from internal combustion engines to electric
vehicles, the shift to renewable energy, and the decarbonization of the
manufacturing industry. (Note: prorated funding is included in FY 2023-
24 supplemental request.) House concurs on funding but includes 10.0
FTE positions.
10. Arts and Cultural Grants Gross $11,050,000 $5,050,000
Executive includes $5.0 million GF/GP (one-time) to augment existing Federal 1,050,000 0
$11.1 million GF/GP ongoing appropriation to provide additional arts and Private 150,000 50,000
cultural grants. An increase of $50,000 is also reflected for private GF/GP $9,850,000 $5,000,000
authorization, to align with anticipated revenues. House concurs.
11. Community and Neighborhood Initiatives Gross $0 $15,000,000
Executive includes $5.0 million GF/GP (one-time) for grants to GF/GP $0 $15,000,000
community and neighborhood organizations for programs and initiatives
that would build strong communities through education programs,
workforce training services, recreational activities, senior programming,
and other wraparound services. Grants would support projects that are
free and open to the community in which they are located or serve.
House includes $15.0 million GF/GP (one-time) for this purpose.
12. Global Talent and Retention FTE 0.0 0.0
Executive includes $4.0 million GF/GP (one-time) and authorization for Gross $0 $0
1.0 FTE position to improve the integration of individuals from foreign GF/GP $0 $0
countries seeking education and/or employment in the state. Funds
would support activities that would increase direct connections between
universities and employers and lowering barriers to employment by
improving licensing and certification processes. House does not include.
House Fiscal Agency 2 5/29/2024
FY 2023-24 FY 2024-25
Enacted House
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
13. Michigan Growth Office Gross $0 $0
Executive includes $4.0 million GF/GP (one-time) to fund efforts that GF/GP $0 $0
would build off and expand the work of the Growing Michigan Together
Council, identify barriers to economic and population growth in the state,
and support community growth opportunities statewide. House does not
include.
14. Office of Rural Prosperity Grants Gross $0 $2,500,000
Executive includes $2.5 million GF/GP (one-time) for grants that would GF/GP $0 $2,500,000
improve shovel-ready projects that meet statewide priorities, including
enhancing or elevating broadband, housing, infrastructure, education,
and workforce development. Funds would also support building and
enhancing regional and statewide coordination of services and
programming in rural communities. House concurs.
15. Workers' Disability Compensation Agency Fee Proposal Gross $8,316,100 $0
Executive includes $1.5 million of state restricted funding authorization Restricted 4,823,000 0
from the Workers' Compensation Administrative Revolving Fund to GF/GP $3,493,100 $0
recognize increased revenues from a proposed expansion of redemption
fees and establishment of coverage reporting filing fees. (Note:
legislation would be needed to effectuate the fee increase and
expansion.) House does not include.
16. Focus: HOPE Gross $1,000,000 $0
Executive retains $1.0 million GF/GP (one-time) for a grant to Focus: GF/GP $1,000,000 $0
HOPE for education and workforce development programming. There
was $1.0 million one-time GF/GP appropriated for the same purpose in
FY 2023-24. House concurs.
17. Executive Order 2023-6 Transfers FTE 12.0 (11.0)
Executive includes the following transfers to effectuate Executive Order Gross $68,674,200 ($67,976,800)
2023-6: GF/GP $68,674,200 ($67,976,800)
• Transfers out $68.7 million GF/GP and authorization for 12.0 FTE
positions for Reconnect and the Tri-Share Child Care program to the
new MiLEAP department.
• Transfers in $697,400 GF/GP and authorization for 1.0 FTE due to
the shift of the Office of Rural Prosperity from MDARD to LEO.
House concurs.
18. Prosperity Bureau Limited-Term Staffing Gross NA $0
Executive includes $1.0 million GF/GP (one-time) and boilerplate GF/GP NA $0
authorization for 4.0 limited-term FTE positions to build staffing capacity
and improve program delivery. House does not include.
19. Language Access Gross $39,874,600 $500,000
Executive includes $500,000 GF/GP (one-time) for the Office of Global Federal 38,369,000 0
Michigan to coordinate language access initiatives statewide, including GF/GP $1,505,600 $500,000
providing technical assistance and guidance to state agencies. House
concurs.
20. Bureau of Services for Blind Persons Federal Authorization FTE 116.0 0.0
Executive increases federal authorization by $3.4 million to recognize an Gross $25,698,800 $3,435,100
anticipated increase in federal revenues for the BSBP. House concurs. Federal 19,211,400 3,435,100
Local 100,000 0
Private 111,800 0
Restricted 350,000 0
GF/GP $5,925,600 $0
House Fiscal Agency 3 5/29/2024
FY 2023-24 FY 2024-25
Enacted House
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
21. Michigan Occupational Safety and Health Radiation Safety FTE 21.4 4.6
Fees Gross $3,466,200 $582,000
Executive includes $582,000 restricted radiological health fees Federal 513,300 0
authorization and authorization for 4.6 FTE positions to reflect increased Restricted 2,952,900 582,000
revenues from a FY 2022-23 fee increase. Funds would support GF/GP $0 $0
increased staffing and updated equipment. (Note: request for funding
was also included in FY 2023-24 supplemental request 2023-2.) House
concurs.
22. State Historic Preservation Office Gross NA $300,000
Executive includes $300,000 of state restricted funding authorization to Federal NA 0
align the State Historic Preservation Office Fees and Charges fund Restricted NA 300,000
source with anticipated revenues. House concurs. GF/GP NA $0
23. MSHDA Technical Assistance Field Staff FTE 303.0 15.0
Executive includes authorization for 15.0 additional FTE positions in Gross $50,259,300 $0
MSHDA Housing and Rental Assistance to support local capacity Federal 2,773,300 0
building for housing. House concurs. Restricted 47,486,000 0
GF/GP $0 $0
24. Housing Development Projects Gross $0 $150,000,000
House includes $150.0 million GF/GP (one-time) to support MSHDA's GF/GP $0 $150,000,000
efforts to increase housing stock and affordability through the
construction of new single- and multi-family housing units, renovation of
existing single- and multi-family units, and completion of energy
efficiency improvements.
25. Community Museum Grants Gross $0 $12,000,000
House includes $12.0 million GF/GP (one-time) for grants to museums GF/GP $0 $12,000,000
that would be awarded as follows:
• $2.0 million to the Lakeshore Museum Center.
• $2.0 million to the Motown Museum.
• $1.0 million to the Chaldean Cultural Center.
• $1.0 million to the Yankee Air Museum.
• $6.0 million for grants awarded on a first-come, first-served basis to
museums that support artistic, scientific, technological, or cultural
exhibitions.
26. Community and Fitness Centers Gross $0 $10,000,000
House includes $10.0 million GF/GP (one-time) to support YMCA GF/GP $0 $10,000,000
centers. Of the total, $2.5 million would be allocated for updating and
expanding the Tri-Cities YMCA located in Grand Haven.
27. Ethanol 15 Rebate Program Gross $0 $9,000,000
House includes $9.0 million GF/GP (one-time) to provide rebates to GF/GP $0 $9,000,000
motor fuel retail establishments that sell blended fuel containing Ethanol
15. The rebate rate under the program would be set at 5 cents per gallon
of blended fuel sold.
28. Symphony Orchestra Competitive Grants Gross $0 $6,000,000
House includes $6.0 million GF/GP (one-time) for grants to symphony GF/GP $0 $6,000,000
orchestras in Michigan that have a de