Thursday, May 28, 2020

Governor Whitmer Discusses State Budget and Asks for Federal Government Funds (05-28-2020)

Governor Whitmer indicated there is a $3 billion dollar shortage in the budget and is asking Federal government to adjust CARES Act to help out balancing state budgets. We knew this budget shortfall was coming for a long time due to business closing and the general impact of COVID. She will focus on education and funding policy & first responders. There will be priority in funding for research and research universities, roads, training, healthcare, college and other issues. Focus is on traditional institute support and development such as higher/primary education, road infrastructure, training to bring employees back into the market, and general healthcare.

Its a little of a mixed bag in the sense that these are the main institutions that we can fund and work with in a traditional sense. Helpful yes but within an existing economic context. One must wonder how to create more innovation to generate more wealth in the market. That is dependent on how we orient these businesses and attract new investment and innovation. Thus, there could be a short and a longer term more sustainable strategy. Funding many of these organizations may be beneficial but they don't necessarily generate new wealth directly; they are supportive in nature.

Its a chicken or egg concept. I would like to see more focus in this business generation arena to generate new wealth, jobs, and tax revenue. That is where different philosophies can balance out existing philosophies to create a more holistic approach. We often think of one or the other but there are often parts of different strategies that can work together. For example, training is awesome but if you don't have the jobs, don't have new businesses that need those skills, or are unsure of what skills to train on to compete in the new market then resources spent may not be as effective as they should be.

There are no easy answers here but lots of questions. to see risk levels on the area

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