Mixed Bag for Michigan Talent Initiatives in FY15 Budget

Lawmakers approved funding for a bond program that dedicates $50 million for re-tooling community colleges with the latest equipment, but failed to pass a larger proposal that would allow universities to compete for $100 million in bond funds for capital improvements to enhance engineering programs. The budget also includes $2 million to establish a new fund for global marketing of Michigan’s automotive sector and support of public-private collaborations with the auto industry.

The two bond issues were touted by Gov. Rick Snyder in the proposed budget as investments to enhance the talent base of the state through universities and community colleges. Lawmakers included in the approved FY15 budget $4.6 million for first year of debt service on the community college bond, which aims to equip the schools with newer equipment to aid in better delivery of educational programs – especially those focused on high-skill, high-demand occupations. Community colleges will compete for the funds and must demonstrate employer demand within their region.

Under the Engineering Talent Investment Program, which was not approved by lawmakers, universities would have been able to compete for $100 million in bond funds to improve facilities with a goal of attracting more graduates.

Rounding out the governor’s talent-focused investments is a newly created Automotive, Engineering and Manufacturing Technology Fund. The fund will focus on global marketing for the automotive sector and provide support for pilot projects in supply chain and management. Gov. Snyder originally had requested $5 million for the initiative, which was later reduced to $2 million by the legislature.