LEO director outlines governor’s workforce, apprenticeship and broadband priorities in budget presentation

The Appropriations Subcommittee on Labor and Economic Opportunity heard a presentation from Department of Labor and Economic Opportunity Director Susan Corbin on the governor’s fiscal-year budget request for LEO, including proposals to expand registered apprenticeships, strengthen wage-and-hour enforcement, modernize unemployment insurance technology and fund broadband programs.

Corbin told the committee the governor’s recommended budget for LEO for the coming fiscal period includes $1,800,000,000 in ongoing funding, of which $239,500,000 comes from the state general fund, plus $83,500,000 in one-time general‑fund spending. “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.

Why it matters: Corbin framed the budget request as an investment in the state’s talent pipeline and economic competitiveness. The presentation emphasized measurable workforce goals, including raising credential and degree attainment and expanding programs that the department says help people gain stable employment.

Key budget proposals and program details

- Apprenticeships and Going Pro Talent Fund: Corbin highlighted a $19,000,000 request “to expand access to registered apprenticeships” with an explicit focus on nontraditional apprenticeship pathways (for example, IT, cybersecurity, healthcare and other occupations beyond traditional trades). She said Michigan has more than 22,000 registered apprentices and pointed to state measures of apprenticeship success, including a median salary ‘‘over $80,700’’ one year after completion and a 94% retention rate for graduates.

- Barrier removal and employment success (BREEZE): Corbin described state funding that supports services — transportation, childcare, legal services and tools for work — that help low‑income and ‘ALICE’ households participate in the workforce. She said the program will support at least 2,500 unemployed workers and members of the ALICE population statewide.

- Vocational rehabilitation and transition services: Corbin said the proposed $8,400,000 in general fund investment would allow the state to provide the required match to access about $32,000,000 in federal vocational rehabilitation funding. She told the committee the state’s vocational rehabilitation services served more than 30,000 individuals in fiscal year 2023 and that the governor’s request would support transition services for students with disabilities age 14 and older.

- Wage-and-hour enforcement and staffing: Corbin said the department is requesting additional ITIF funding (a $20,000,000 supplemental IT investment request was described) and more investigators to improve the wage-and-hour investigator-to-worker ratio, which she said currently is approximately 1 investigator per 290,000 workers and could improve toward roughly 1 per 75,000 with extra staffing.

- Unemployment Insurance Agency (UIA) modernization: Corbin reviewed continued work on myUI, the replacement for the legacy Midas system, and highlighted UIA claimant tools such as the claimant roadmap and the UI Economic Dashboard.

- Broadband and rural programs: Corbin described accomplishments of the Office of High Speed Internet (MiHi) and said the state completed a challenge process for the federal broadband program and identified more than 2.4 million challenge records. She said the program (referred to in testimony as BEED/BEED program) will fund projects that could connect more than 248,000 locations; Robin funding was cited as aiming to connect nearly 72,000 homes and businesses by the end of 2026. Corbin also described a ‘‘Bridal Readiness Grant Program’’ (presented as a planning/capacity program for rural, tax‑exempt partners) that awards up to $50,000 per grantee and, she said, has helped communities leverage additional funding.

Questions from committee members

Committee members asked how the proposed apprenticeship funding would be applied and whether program rules are flexible enough to support nontraditional apprenticeships. Corbin said registered apprenticeship programs must be approved by the U.S. Department of Labor to ensure participants receive portable credentials, and she said the requested $19,000,000 would allow the state to emphasize nontraditional apprenticeship pathways.

Senator McMorrow asked whether proposed federal funding cuts could reduce LEO programs. Corbin said staff are reviewing federal proposals and noted preliminary signals of a possible 10% cut in WIOA funding, which would affect local Michigan Works agencies. She said the $19,000,000 state investment would be helpful to maintain apprenticeship work if federal dollars decline.

Senator Huizenga asked about potential duplication among housing programs administered across agencies (for example, MEDC and MSHDA). Corbin said the department is working to create synergy among agencies, pointing to staff overlaps and joint boards, and said efforts are under way to avoid duplication.

Formal actions taken at the start of the meeting

Votes at a glance: - Meeting minutes from the committee’s prior hearing on 04/24/2024: motion to adopt by Senator Heisinga; “Without objection, meeting minutes are adopted.” (adopted) - Motion to excuse absent members: moved by Senator McCan; “Without objection, absent members are excused from today’s meeting.” (approved)

Context and next steps

Corbin closed by reiterating the department’s focus on equity, data‑driven strategies and partnership with the 16 Michigan Works agencies, community colleges and employers. She said the department would continue to work with MEDC, MSHDA and other partners and that staff would follow up on data requests and continue conversations about statutory flexibility, federal funding risk, and program implementation.

Ending

With no further business, the committee adjourned after the Q&A. The presentation provided committee members detail on programmatic priorities and state funding requests and flagged potential impacts from pending federal funding decisions.