(The Center Square) – Michigan lawmakers are advancing competing budget plans as the state moves closer to its July 1 deadline.
The Republican-led House approved a $75.8 billion budget plan for fiscal year 2026-27 last week. The proposal reduces overall spending by $106 million and cuts nearly $600 million from the state’s general fund while avoiding new taxes and adding to the state’s rainy day fund.
“Right now, families are stretching every dollar just to keep up,” said House Appropriations Chairwoman Rep. Ann Bollin, R-Brighton Township. “They expect their government to be just as careful with their money.”
House Republicans say their plan focuses on cutting excess spending and aligning the budget with real expenses, pointing to what they describe as roughly $2 billion in “overfunded” line items across state government.
“This is what responsible governing looks like,” Bollin said. “It’s not about spending more. It’s about spending smarter.”
The House budget includes increased funding for roads, Medicaid and local governments, along with a $250 per-pupil increase for schools and continued taxpayer support for programs such as universal school meals.
It also eliminates thousands of vacant “ghost” positions and invests in fraud prevention efforts.
Outside groups aligned with Republicans have praised this approach.
“House Republicans are showing Michiganders which leaders in Lansing have their priorities straight,” said Gabe Butzke of the Michigan Forward Network. “Gretchen Whitmer and her insider allies are trying to raise taxes and blow through the rainy day fund while Republicans are focused on responsible, focused spending.”
But the House plan stands in sharp contrast to Whitmer’s executive budget proposal unveiled earlier this year.
Whitmer’s plan totals $88.1 billion – about $10 billion higher than the House version – and includes record K-12 education spending, tax relief for seniors and additional investments across multiple state programs.
“Governor Whitmer is focused on the everyday things that matter most to Michigan families – lowering costs, ensuring our kids can succeed, and protecting Medicaid,” State Budget Director Jen Flood said when the proposal was introduced.
Whitmer called her proposal balanced and focused on long-term priorities.
“My balanced budget proposal will build on our strong record of bipartisan success,” Whitmer said. “Let’s work together to deliver another balanced, bipartisan budget on time.”
However, Republicans have raised concerns about the size of the proposal, as well as potential tax increases and use of the state’s budget stabilization fund.
“I have serious concerns about proposals for hundreds of millions of dollars in new taxes and fees that would make life more expensive,” Bollin said in February. “I believe we can work together to find better solutions that protect taxpayers while still funding our core priorities.”
In Michigan, the governor has the overall budget responsibility but must then work with the state Senate and House to pass it. The Legislature has a deadline of July 1 to finalize and pass the budget.
Last year, the Legislature missed that deadline, dragging out the state budgeting process well into the fall.
With Republicans in majority of the state House and Democrats holding the state Senate and governorship, the budget process is likely to be fraught once again this year. Negotiations continue as lawmakers await the Democrats’ response to the Republicans’ plan.
