Gov. Gretchen Whitmer is suspending state hiring and vetoing previously-planned state spending in a budget bill as the state anticipates reduced revenues due to the economic consequences of the COVID-19 crisis.

Whitmer signed two supplemental budget bills to secure $150 million in new funding to respond to the coronavirus pandemic but vetoed $80 million in other planned budget items. The governor also took additional steps to conserve resources by ordering the temporary suspension of government hiring and restricting all discretionary spending by state departments and agencies.

The governor said the “world has changed” since the supplemental bills were negotiated earlier this year. Legislative leaders and the state Budget Office agreed vetoes were needed to save tax dollars “due to the incredible toll” COVID-19 will likely have on Michigan’s economy, Whitmer said at a Monday press conference.

“It’s too early to determine the exact impact on state revenues, and knowing there is potential for a significant loss in revenue, now is not the time to sign a bill for supplemental funding for anything other than dollars that can be utilized to help our COVID-19 response,” Whitmer said.

The bills add funding to the current budget year, which runs Oct. 1, 2019 through Sept. 30.

House Bill 4729 included $125 million for coronavirus response, including sending $50 million to the Department of Health and Human Services to be distributed to critical health care providers and putting $35 million in a specially-designated coronavirus response fund.

Senate Bill 151 included $25 million for coronavirus response, which the governor approved. Of that, $10 million will go to state departments responding to coronavirus and $15 million will be set aside to address additional coronavirus needs as they arise.

The governor vetoed, however, an additional $80 million in funding included in SB 151 after coming to an agreement with House and Senate leaders. As passed by the House and Senate, the bill included $180.6 million in general fund dollars as part of $312.3 gross spending.

Per the state budget office, all spending in SB 151 was vetoed except the $25 million for coronavirus response efforts and the following:

$31 million for court-ordered legal settlements within the Michigan State Police and Department of Corrections

$19 million to pay down liabilities in the Venture Michigan Fund program that save the state at least $23 million (net $4 million)

$14 million for legally required reimbursement of locals for presidential primaries

$7 million General Fund/$48 million Gross to boost hospital outpatient rates as they respond to the virus

$4 million to ensure critical oil and gas inspections continue

$8 million to authorize spending for dedicated federal and restricted funds

Cuts include $15 million set aside for the Pure Michigan program and a number of smaller appropriations to local communities for things like libraries, event centers, museums and downtowns.

“Where there are unplanned expenditures or potential addition to operations, we’re going to stop all of that because we know we’ve got to be really conservative right now,” Whitmer said. “We know the toll that COVID-19 is going to take on our state economy and on our ability to meet the needs of the budget.”

Leaders of both parties in the state legislature celebrated the new funding related to coronavirus.

“Residents across the great state of Michigan need to know that the Executive and Legislative branches of state government are working together to do whatever is necessary to ensure an effective response to COVID-19," read a joint statement.

The statement was signed by Whitmer, Senate Majority Leader Mike Mike Shirkey, R-Clarklake; Senate Minority Leader Jim Ananich, D-Flint; House Speaker Lee Chatfield, R-Levering; and House Democratic Leader Christine Greig, D-Farmington Hills.

Whitmer said the state has already expended more than $80 million to secure vital medical supplies for hospitals that are being overwhelmed by the rising number of COVID-19 cases.

The funding secured more than 20 million N95 masks, 2,000 ventilators, nearly 9 million ounces of hand sanitizer, 255,000 boxes of gloves, 2.4 million gowns, 2,000 beds, 210,000 testing supplies, 3,000 thermometers, 185,000 face shields, 22,000 cartons of disinfecting wipes, and other needed supplies.

Michigan received 112,000 N95 masks from FEMA with another 8,000 on the way. The shipment is helpful at this moment, Whitmer said, but more there’s a much greater need.

She said one Detroit-area hospital goes through around 10,000 masks per day. Ten N95 masks are used every day in the course of treatment for one patient.

Meanwhile, the number of confirmed cases continues to rise daily. There were 5,486 confirmed cases and 132 deaths as of Sunday.

Chief Medical Executive Dr. Joneigh Khaldun said no one can say exactly when the cases will reach their peak, but it’s likely "several weeks” weeks away.

Whitmer urged Michiganders to stay in their homes in the meantime. She reminded residents that an executive order requiring people to stay in their homes until April 14 prohibits associating with neighbors and holding family gatherings.

PREVENTION TIPS

In addition to washing hands regularly and not touching your face, officials recommend practicing social distancing, assuming anyone may be carrying the virus. Health officials say you should be staying at least 6 feet away from others and working from home, if possible. Carry hand sanitizer with you, and use disinfecting wipes or disinfecting spray cleaners on frequently-touched surfaces in your home ( door handles, faucets, countertops ) and when you go into places like stores.

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