Battle Creek Times

With the federal stimulus package having passed through both houses of Congress, Americans may be wondering what exactly will be included in the stimulus bill.

One particular area of interest is the amount of funds that the state of Michigan will be receiving -- and subsequently spending. 

Federal funds in the Michigan state budget totaled $23.2 billion in the last budget before COVID-19, according to Michigan Capitol Confidential. In the budget that followed, the first year of the pandemic, that figure jumped to $33.7 billion. This represents a 45% increase over the previous year. This year's budget also contains an increase in federal funds. 

The current budget for 2021 includes about $25.7 billion in federal funds, without counting added stimulus efforts that the federal government may pass in the future. The recent economic stimulus bills means that the state will have more funding from the federal government than at any point since the 2007-2008 fiscal year, which was during the housing market crash and recession. The current figure is a 22% increase over what is considered typical for federal funding as a part of the Michigan state budget. 

There is also talk of further increasing this number through another round of stimulus, which could mean $5.7 billion of additional federal funding. 

There are some concerns that these massive expenditures could lead to inflation, setting the stage for unnecessary challenges for future generations. In addition, the debate about stimulus reaches beyond just the state of Michigan. The stimulus has been a target for criticism, with many calling it unnecessary and asserting that the early signs of recovery in the economy have been encouraging. 

Regardless, the increase in federal funds in the state budget will have economists watching for years to come to see which way the trend goes in the future.