As the state budget inches closer to Gov. Gretchen Whitmer’s desk, Northern Michigan business leaders and politicians are hoping some extra funding for the Office of Rural Development will make into the budget.
The office gives rural communities a chance to apply for federal and state funds to help with initiatives that they otherwise may not have been able to apply for.
The newly formed Office of Rural Development was created in January of 2022 to focus on the strategic needs of rural communities across Michigan. This year’s budget had $3 million set aside for the office. However, the Northern Michigan Chamber Alliance along with State Representatives Betsy Coffia, John Roth and State Senator John Damoose, are all calling on legislators to add an additional $7 million for the office in next year’s budget.
The Director of Government Relations at the Northern Michigan Chamber Alliance, Henry Wolf, says providing the Office of Rural Development with more funding will allow smaller communities to be able to add capacity in order to apply for funds that they may be eligible for, but don’t have the time to apply for.
He says the additional funding would give local communities more opportunities to expand on initiatives like broadband, transportation, childcare and housing. Wolf says they’re calling on legislators to add funding for the office this year because it may not be available in 2024-2025.
“A lot of the federal funding that we saw as a result of the American Rescue Plan will expire in 2025, and we don’t want to leave any additional money on the table. So, by including the Office of Rural Development this year it will be dispersed next year, so our communities can be ready to apply for the funds that expire in 2025,” Wolf explains.
The President of the Cadillac Area Chamber of Commerce Caitlyn Stark says while the overall state population has dropped, rural communities actually showed growth and says the additional funding is needed in order for them to keep up.
“These are critical issues that we, like the rest of the state, was frustrated with and was experiencing. But while we have this growing population, the only way we’re going to retain and invest in this future workforce is if we retain and invest in them now,” Stark states.
An over $80 billion revised state budget passed the state house earlier in May. State Legislators hope to have the budget signed by Governor Whitmer no later than July 1.