Subcommittee adopts H‑1 substitute for House Bill 5610, cutting FTE authorizations and shifting funds

The House Appropriations Subcommittee on Labor and Economic Opportunity voted to adopt the H‑1 substitute for House Bill 5610, the subcommittee budget that makes major funding and staffing adjustments across the Labor and Economic Opportunity portfolio.

Marcus Coffin of the House Fiscal Agency summarized the package, saying the House subcommittee budget would lower federal funding by $316.7 million, increase state restricted funding by $155.1 million and reduce general fund by $115.3 million, for a gross decrease of $279 million. He also told members the budget would reduce overall FTE authorizations by 196 positions to align counts with first-quarter filled positions.

The H‑1 substitute contains several notable program changes: it directs a one‑time lapse of SOAR fund balances and associated work project balances to create a $145.3 million legislative spending transparency fund; it removes funding and FTE authorization for line items including the Community Worker Economic Transition Office, the Office of Future Mobility and Electrification, the Office of Global Michigan, the Prosperity Bureau, the Arts and Cultural Program and the Business Attraction and Community Revitalization line; and it replaces some Pure Michigan general‑fund support with $20 million in state restricted 21st Century Jobs Trust Fund dollars to continue tourism marketing with different fund sources.

The package also includes targeted investments and swaps: $40.4 million in 21st Century Jobs Trust Fund support for small business assistance and Going Pro ($30M ongoing, $10M one‑time); $15 million general fund to support compliance activities tied to SNAP and Medicaid work requirements; and provisions directing the Michigan High Speed Internet Office to report impediments facing federal broadband grantees and requiring regional Michigan Works agencies to increase employer collaborations and report outcomes.

Rep. Van Woerkom moved adoption on the committee floor; the clerk recorded affirmative votes for Representative Robinson, Van Woerkom, Cabot and Martus and declared the motion passed. The subcommittee then voted to report HB 5610 (H1) to the House Standing Committee on Appropriations.

What happens next: With the subcommittee’s adoption and report-out, HB 5610 (H1) will proceed to the full House Appropriations Committee for further consideration and any floor actions would follow the committee process.