LEO presents FY26 workforce priorities, requests funding for apprenticeships, barrier removal, UI modernization

Susan Corbin, director of the Michigan Department of Labor and Economic Opportunity, outlined the department’s workforce and program priorities and the administration’s fiscal year 2026 budget recommendations to the House Appropriations Subcommittee on Labor and Economic Opportunity.

Corbin said the governor’s proposed budget would support training, barrier-removal services, and apprenticeship expansion and noted the department’s role as the state’s lead agency on talent and workforce. “The governor’s proposed investments will help lower costs for working families, ensure every child can succeed from pre-K through postsecondary education, and create an environment where any person or business can make it in Michigan,” Corbin said.

Corbin emphasized that most of LEO’s funding is federal and that the governor’s recommended ongoing funding for LEO totals about $1.8 billion, with roughly $239.5 million from the state general fund and $83.5 million in one-time general fund requests for FY26. She said just over 65% of LEO’s funding comes from federal sources.

Corbin described the department’s workforce priorities: expand access to registered apprenticeships, grow credential and degree attainment among working-age adults, and remove employment barriers such as transportation and childcare. She said Michigan ranks highly on several workforce metrics, including being a top state nationally in credential attainment for adults and in apprenticeship enrollment growth.

The director described specific program proposals and outcomes referenced in the presentation: - Barrier Removal and Employment Success Program (BREE/Barrier Removal): additional funding to provide supports—transportation, childcare, legal services and other supports—intended to help participants obtain and retain employment. Corbin said additional funding would support at least 2,500 unemployed workers and members of the ALICE population statewide. - Registered apprenticeships: new funding would help more than 1,700 Michiganders, including underserved populations, access apprenticeship opportunities. Corbin said Michigan has more than 22,000 apprentices and added 8,600 new apprentices last year. - Pre-employment transition services and vocational rehabilitation: a proposed $8.4 million general fund investment to secure approximately $32 million in federal vocational rehabilitation matching funds for training for people with disabilities. - Wage and Hour enforcement: Corbin said the current investigator-to-worker ratio is about 1 investigator per 290,000 workers and that proposed increases would move that closer to 1 per 175,000. - Unemployment Insurance Agency (UIA) modernization: Corbin described a supplemental request for $20 million in IT infrastructure funding (ITIF) to support the MyUI modernization effort, upgrade anti-fraud capabilities, and reduce reliance on legacy systems.

Committee members asked for additional detail and follow-up materials. Representative Van Werkom asked how third-party nonprofit partners are selected and whether the department tracks return on investment; Corbin said federal reporting and an outside consultant will be used for evaluation of pass-through grants and local partnerships. Representative Robinson asked for an itemized list of appropriations for workforce programs and a list of positions unfilled for a year or more; Corbin agreed to provide those materials and said Deputy Director Stephanie Beckhorn will present upcoming details on employment and training services.

Corbin and members discussed outcomes and benchmarks cited in the presentation, including goals to increase the share of working-age adults with credentials or degrees and to move households into the middle class; the presentation cited targets and multi-year goals.

The subcommittee heard the presentation and accepted materials and follow-up commitments; no formal budget votes were taken at this meeting.

Corbin concluded by underscoring coordination across local Michigan Works agencies, community colleges, and other providers to deliver training and supportive services that the department says are necessary for Michiganders to enter and remain in the workforce.