(The Center Square) – The State Budget Office presented Michigan Gov. Gretchen Whitmer’s executive budget to a joint House and Senate Appropriations Committee on Wednesday.
The fiscal year 2025-2026 budget recommendations include record-high K-12 education spending, an increase in funding going to public safety programs, and additional investments into multiple state funds.
“I’m excited to lay out the governor’s budget, which both focuses on kitchen table issues that matter most to all Michiganders,” said Jen Flood, state budget office director, in the committee meeting. “While inflation is cooling, families are still struggling with rising costs, and that’s why the number one focus of this budget is lowering costs.”
The budget proposed will total $83.5 billion, just $1 billion more than last fiscal year’s budget of $82.5 billion. That signals a significant slowdown in the year-over-year budget increases of the past few years which were largely driven by a slowdown of federal monies, which saw massive expansion during and in the aftermath of the COVID-19 pandemic.
Still, federal funding alone will make up 41.7% of the fiscal year 2025-2026 budget. Because of this and the recent moves by the Trump administration to slow federal spending, many senators and representatives on the committee expressed concerns during the meeting about the impact that might have on the state’s budget.
“Federal funding is critical to keeping the health and safety of Michiganders at the forefront,” said Flood. “There’s obviously been a lot of chaos out of Washington, D.C. over the past couple of weeks. We are monitoring closely the executive orders that are coming out and also actions in the courts to determine what it could mean for our state.”
She added that, if there are any significant changes in federal funding, the state budget office would work together with the legislature to determine next steps.
Additional budget recommendations, which Flood said “double down on bipartisan priorities,” include:
Continuing the Working Families Tax Credit$200 million to continue funding free school breakfasts and lunches$676 million to expand free Pre-K to every four-year-old in MichiganIncreasing spending per K-12 student to $10,000 per year, a $392 increase.Additional funding for free community college, technical programs, scholarships, and placement testing.Expanding funding to affordable housing programs, including “the largest investment to build affordable housing in Michigan history”
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.
Democrats held a trifecta when the last two budgets were passed, making it easier to push their priorities. Now, Republicans hold control of the state House.
“There are a lot of loose ends and a lot of unanswered questions,” said Rep. Ann Bollin, R-Livingston and chair of the House Appropriations Committee, at the conclusion of the meeting. “I hope that, as we move forward, we can continue to make life more affordable in the state of Michigan, make sure our kids are educated, [and] our streets are safe.”
