Michigan LEO explains multi‑year "work projects," seeks funding for Going Pro; MSHDA unveils $10M employer housing pilot

Members of the Michigan Department of Labor and Economic Opportunity (LEO) and the Michigan State Housing Development Authority (MSHDA) told the House Appropriations Subcommittee on Labor and Economic Opportunity that “work projects” allow one‑time appropriations and certain federal awards to be carried across fiscal years and provide time to obligate and reimburse grantees.

LEO Chief Administrative Officer Greg Rivitt said the authority for the accounting construct comes from state statute, and that work projects give agencies up to 48 months to complete one‑time efforts. He and MSHDA Executive Director Amy Hovey emphasized that many state housing and workforce grants are reimbursement‑based and require additional time and matching funds to draw down federal dollars.

Rivitt defined the mechanism and provided program totals. “In accordance with MCL 18.1451a, a work project is a one‑time, nonrecurring effort designed to achieve specific goals,” he said. Rivitt told the committee LEO placed 21 new work projects last fiscal year; of those funds 70% are obligated, 22% expended and the remainder unobligated and in procurement or RFP processes. He described the work project vehicle as necessary where grantees need multi‑year timing to deliver outcomes and to support reimbursement invoicing processes.

Rivitt reviewed major work projects and agency requests. He said the Going Pro Talent Fund — grants to employers for training current and new workers in high‑demand industries — had $54 million in a 2023 work project that is fully expended and $49 million in FY 2024 that is obligated but largely pending invoicing. The department is requesting $54.8 million in the next…