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Subcommittee adopts chair’s recommendation for LARA budget, including Michigan Saves expansion
Summary
The Senate Appropriations subcommittee approved the S-1 substitute to advance Senate Bill 177, the chair’s recommendation for the Department of Licensing and Regulatory Affairs budget, endorsing program continuations and targeted increases including an expanded Michigan Saves program, smoke detector funding and a mobile home database.
The Senate Appropriations Subcommittee on Licensing and Regulatory Affairs on an unrecorded date approved the S‑1 substitute advancing Senate Bill 177, the chair’s recommended fiscal year 2025–26 budget for the Department of Licensing and Regulatory Affairs (LARA).
The chair of the subcommittee, Chair Kavanaugh, said the recommendation balances fiscal responsibility with continued investments in consumer protection, transparency and accountability. "I do want to note prioritizing fiscal responsibility while continuing to invest in programs that had meaningful impacts in our state," Kavanaugh said.
The bill package the subcommittee advanced includes a gross appropriation of $657,053,200, of which $307,739,300 is general fund, the Senate Fiscal Agency reported. The recommendation lists baseline adjustments and program increases: $4,100,000 in federal funding for statewide energy code and energy benchmarking in construction; $2,200,000 from interdepartmental grants to align with caseloads at the Michigan Office of Administrative Hearings and Rules; and $305,700 in restricted funding to support two mortuary science license types created by Public Act 107 of 2024.
Ongoing program increases within the chair’s recommendation include $3,500,000 for Michigan Saves (a loan program expanded to include a grant option for those with difficulty accessing traditional capital), $2,400,000 in restricted funding for immediate jeopardy compliance investigations in nursing and continuing care facilities, $769,100 in general fund for the Michigan Indigent Defense Commission to support monitoring and planning across local indigent defense systems, and $700,000 in general fund to enhance oversight for state‑licensed homes for the aged. The bill package also eliminates certain one‑time funding items from the current fiscal year.
Senator Tice sought additional time to review the text before voting, noting an item in the summary about adding eight FTEs for elevator inspectors without a corresponding increase in authority or dollars. "So is the plan to cross train people who are already employed and they won't have any additional pay for their cross training?" Tice asked. Chair Kavanaugh said the FTE language is intended to provide flexibility and that the subcommittee has been working with the department and solicits further feedback.
Senator Santana expressed support for the bill, highlighting indigent defense funding for juvenile representation and the expansion of Michigan Saves to help residents afford household efficiency projects. "You have my full support," Santana said.
The subcommittee adopted the S‑1 substitute for Senate Bill 177 and reported it to the Senate Committee on Appropriations. The clerk recorded two yea votes in favor of the substitute; the clerk identified Chair Kavanaugh and Senator Santana as voting yes.
The subcommittee's endorsement sends the chair's recommendation and the S‑1 substitute to the full Senate Committee on Appropriations for further consideration.
