(The Center Square) – Conflict over budget priorities is already growing, just one week after the State Budget Office presented Michigan Gov. Gretchen Whitmer’s spending plan.
This is Whitmer’s eighth and final budget proposal, as a new governor will take office this coming year.
The fiscal year 2026-2027 budget recommendations included record-high K-12 education spending, property tax and retirement relief for seniors, and additional investments into multiple state funds.
“Governor Whitmer is focused on the everyday things that matter most to Michigan families—lowering costs, ensuring our kids can succeed, and protecting Medicaid,” said State Budget Director Jen Flood. “We’ve shown that we can work together to pass balanced, bipartisan budgets, and I look forward to continuing that work with our legislative partners to get the budget done ahead of July 1.”
The budget proposed will total $88.1 billion, a jump of $7 billion from last year’s budget of $81 billion.
While the 2025-2026 budget was historic for its reduction of spending, this dramatic proposed increase is raising red flags already for Michigan Republicans.
“Last year, we made intentional choices,” said House Appropriations Chair Ann Bollin, R-Brighton Township. “I have serious concerns about proposals for hundreds of millions of dollars in new taxes and fees that would make life more expensive, as well as the idea of drawing down our rainy-day fund, which should be preserved for true emergencies. I believe we can work together to find better solutions that protect taxpayers while still funding our core priorities.”
Compromising on the last fiscal budget was no easy task for Michigan lawmakers. Instead, it led to a months-long struggle that culminated in October, long after the budget deadline of July 1. This year, it seems Republicans and Democrats are once again starting miles apart on the budgeting process.
Whitmer stood by her recommendations, which included a general fund total of $13.6 billion and a school aid budget totaling $21.4 billion.
“My balanced budget proposal will build on our strong record of bipartisan success,” she said. “It doubles down on shared, long-term priorities to create good-paying jobs, fix roads, save Michiganders money, and ensure every child can read, eat, and succeed. Let’s work together to deliver another balanced, bipartisan budget on time and keep moving Michigan forward.”
Groups like the Michigan Afterschool Partnership, the Michigan Works! Association, and the Keep MI Kids Tobacco Free Alliance have all applauded the budget for designating money to their causes.
Yet, not everyone is happy. Americans for Prosperity of Michigan criticized the proposed budget as a “reckless spending spree” that fails to address the state’s nearly $900 million budget gap.
“Governor Whitmer says that she is focused on lowering costs and making life more affordable for Michiganders, but her actions suggest otherwise,” said State Director Tim Golding. “Her latest budget proposal calls for creating new taxes and fees that Michigan families cannot afford.”
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.
With Republicans controlling the state House and Democrats holding the state Senate and governorship, the budget process is likely to be fraught once again.
Republican lawmakers argue the state should be adding to some of the successes in last year’s budget that cut down on wasteful spending.
“Last year, we cut hundreds of millions in waste, fraud, and abuse from the state budget, shut down government slush funds, and eliminated thousands of ghost employee positions taxpayers were unknowingly footing the bill for, proving it’s not necessary to raise taxes to balance the budget, state government simply needs to live within its means,” said State Rep. Timmy Beson, R-Bay City. “That’s the responsible approach, and we will use the same roadmap this year.”
