6 ways Michigan’s new state budget invests in rural communities 

A bipartisan state budget bill signed this week by Gov. Gretchen Whitmer features millions of dollars in funding for Michigan’s rural communities—including support for state programs that are designed to support farmers, expand agricultural supply chains, and help small businesses grow. 

MICHIGAN—Michigan’s kids and public schools are set to reap some of the biggest rewards of Michigan’s newly signed state budget, but the $82.5 billion budget bill signed this week by Gov. Gretchen Whitmer is also heavily focused on investing in smaller, rural communities statewide.

“I’m really pleased with where we’ve come out here with the support from our legislative partners,” Tim Boring, director of the Michigan Department of Agriculture and Rural Development (MDARD) told The ‘Gander. “We’re going to be able to continue building out value for Michigan’s rural communities. … We’ve had fantastic cooperation in the legislature of really prioritizing rural areas and rural issues in so many different ways.”

Funds for Agriculture

More than 805,000 Michiganders are employed in production agriculture, food processing, or related businesses—which reportedly makes the state’s agriculture industry the second-largest contributor to the economy and the second-most diverse agricultural sector in the country.

The latest state budget earmarks about $157 million for MDARD—including about $30 million to support environmental and sustainability efforts like soil health and regenerative agriculture, climate resiliency programs, and pollution prevention programs, Michigan Advance reports.

“We’re proud to support investments and enhancements in agricultural sustainability programs that will help drive innovation, bolster farm resiliency, promote food security, and help protect our state’s vital natural resources,” Ben Wickerham, a program director at The Nature Conservancy, said in a statement in February after Whitmer introduced her latest state budget proposal.

Protecting Natural Resources

A recent report from the Michigan Office of Rural Prosperity identified the protection of natural resources and land preservation as a top priority for rural communities across Michigan.

The new budget features about $535 million for the Michigan Department of Natural Resources (DNR)—which will support efforts to help sustain wildlife, improve parks, and encourage environmentally friendly business practices to protect the environment in rural communities.

Among the items reportedly included in the DNR’s budget plan:

• $83 million for wildlife and fisheries management 
• $7 million for invasive species prevention and control
• $3 million for the Great Lakes Restoration Initiative

Notably, under this year’s budget, the state’s recreation passport program (where drivers can pay an extra $14 on their annual vehicle registration to access state parks) will now operate as an opt-out program rather than the current opt-in program—a move that state budget officials estimate will draw in about $20 million a year for improvements to state parks across Michigan.

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) also received more than $1 billion in the latest state budget bill—which includes more than $300 million to address environmental contamination from PFAS and other pollutants, Michigan Advance reports.

Housing & Workforce Development 

The most cited concern facing Michigan’s rural communities is tied to workforce shortages and lack of affordable housing for workers, according to a recent state report. And state officials contend the two issues are closely linked—namely due to employers being unable to fill open positions because their applicants cannot find affordable housing in rural communities.

The new state budget plan helps address the issue by providing another $100 million to construct more affordable housing across the state—all under the broader statewide goal of creating more than 115,000 new affordable homes across Michigan over the next five years.

Another $3.3 million will support the Housing Readiness Incentive Grant Program, which helps local communities make master plan updates and zoning amendments to boost housing supply. About $5 million in the budget will also go toward helping low-income households make energy improvements to their homes, with the ultimate goal of reducing their annual utility costs.

“The focus on housing is huge,” Boring said. “This is one of the greatest limitations of growing a business and attracting new talent into rural communities, and that’s a big piece of how we can continue to grow a sense of place and get people to choose to live and stay in rural areas.”

A total of $150 million will also support the reopening of the Palisades Nuclear Facility in rural Covert Township, protecting about 600 jobs at the plant (and another 1,100 additional jobs throughout the community) while helping Michiganders adopt a cleaner source of energy.

Support for Farmers

The latest state budget includes $3 million for a “Farm to Family” program designed to support regenerative farming practices, build out agricultural supply chains across the state, and promote Michigan food products. Boring has said the new program will build a more secure, sustainable, and self-sufficient food economy in Michigan—and provide a big boost for farmers.

The goal of the program, Boring has said, is to give more Michiganders better access to Michigan-grown and Michigan-made products—perhaps in place of processed foods or foods imported from elsewhere—by directly connecting farmers, supply chains, and consumers.

“We know that locally produced, high-quality food has any number of health benefits in rural areas,” Boring told The ‘Gander. “Making sure that people are eating better, growing high-value products. It’s healthier people, healthier economies, and healthier rural systems. This is work that’s going to address some of the barriers into making food access more possible.”

The latest budget plan also includes $3 million in funding for the Michigan Alliance for Animal Agriculture, a partnership among the state’s animal agriculture industries and Michigan State University (MSU) that’s focused entirely on advancing the state’s animal agriculture economy.

The Agricultural Climate Resiliency program at MSU also received $1 million in ongoing funding, as well as $5.1 million in a one-time appropriation to support research and outreach related to climate and water science—specifically to support farmers and combat climate change.

Rural Prosperity

In 2022, Whitmer established the Michigan Office of Rural Development—largely in response to concerns from rural Michiganders who wanted to ensure state policies, programs, and other resources were tailored to match the unique needs of rural areas. Last year, the office was renamed as the Office of Rural Prosperity and charged with focusing on key rural challenges— like housing, broadband, infrastructure, workforce development, and health care access.

The latest state budget includes $2.5 million for the recently renamed (and refocused) office to expand its outreach efforts and grant funding in rural communities across the state.

Boring said funds for the office represent a clear state focus on smaller, rural communities—as opposed to centering investments exclusively in the state’s larger cities and population centers.

“You can see in this budget how there’s significant investments in staffing and capacity there in that [Rural Prosperity] office, and that work is absolutely focused on providing a brighter future in rural communities,” Boring told The ‘Gander. “I know that the governor and our entire administrative team here is prioritizing and listening to our rural communities and making sure that we’re well plugged into how we can deliver solutions for the people of Michigan.”

Rural Education

Some students need more help than others—and Whitmer’s budget plan recognizes that by investing $300 million for student mental health and school safety needs, $251 million to support literacy grants and literacy coaches, and $200 million for the MI Kids Back on Track program, which provides tutoring and other learning opportunities for kids both before and after school.

And rural Michiganders will also benefit from an additional $97 million in state funding that was earmarked this year specifically to support students in rural districts, at-risk students, English language learners, and those studying in career and technical education programs.

An additional $125 million will help rural districts with transportation costs, ensuring those schools have even more money to spend directly into the classroom. Another $75 million was earmarked to support all students and parents through expanded extracurricular programs.

State-funded preschool offerings for all Michigan families were also wrapped into the budget, as well $25 million to help open new child care centers in rural, underserved pockets of the state.

“Education continues to be a big challenge for a lot of families,” Boring told The ‘Gander. “Lowering the cost of education is huge. I think it really positions our state well into the future.”

READ MORE: 5 big takeaways from Michigan’s new education budget

For the latest Michigan news, follow The ‘Gander on Twitter.

Follow Political Correspondent Kyle Kaminski here.