LANSING — Governor Gretchen Whitmer released her proposed budget for the 2025-26 fiscal year last week. Whitmer led the budget proposal with calls to preserve the funding increases in prior budgets for education and targeted investments in corrections and information technology.
State Budget Director, Jen Flood presented the proposed executive budget before a joint session of the House and Senate appropriations committees. The budget recommendation follows key areas with investments laid out under each.
Lowering Costs
The budget recommendation includes investments to lower costs and help Michiganders fight inflation, including:
• Continues the Working Families Tax Credit, which delivered an average of more than $3,500 in tax relief to 650,000 families last year.
• $676.1 million to continue providing universal pre-K through the Great Start Readiness Program to an estimated 57,100 children, including:
• $200 million to continue providing free school meals to all 1.4 million public school students, saving families $850 per year.
• $5 million to support the MiABLE program expansion, which helps Michiganders with disabilities save money without impacting their benefits eligibility.
• $2.3 million to provide child care for approximately 700 children of Michigan National Guard members while their parents are on drilling status, supporting the Guard’s recruiting and retention efforts.
• $3 million to provide financial literacy education services to Michiganders.
• $1 million to ensure test fees remain capped at $5 for low-income students taking high school courses for college credit, covering 34,350 exams.
• $7 million to create affordability programs to help families struggling with their water bills.
Creating Jobs
The budget recommendation proposes investments that will create jobs, grow our economy, rebuild roads and bridges, and improve Michigan’s infrastructure, including:
Fixing Roads and Bridges
• $4.9 billion in total road funding, including federal, state and restricted funds.
• $112.2 million to ensure Michigan matches all $1.8 billion in federal highway aid.
• $98.9 million to improve state and local roads, highways, and bridges across the state.
• $767 million in total ongoing support for transit and rail programs.
• $7.8 million to fund a study and pilot program of potential road usage charge options.
• $10 million to install electric vehicle charging stations across the state. Workers and Small Businesses
• $10 million for Small Business Entrepreneurial Support Hubs to enhance a statewide network of service providers that offer comprehensive resources and critical support to Michigan’s small businesses.
Getting SMART on Education
The budget recommendation continues historic investments in education, from preschool to postsecondary, including:
• $516 million to support school operations through a 4.1% increase in base per-pupil funding— equating to an additional $392 per student, for a total of $10,000 per pupil.
• $202.4 million to continue expanded support for special education students – a 10% increase in the state allocation from adjusted current law levels.
Supporting Seniors
The budget recommendation prioritizes initiatives that benefit and support Michigan’s seniors, including:
• Continues providing tax relief to Michigan seniors through the rollback on the retirement tax, which on average will put $1,000 back into the pockets of 500,000 senior households when fully phased in for tax year 2026.
• $2.9 million to expand the PACE program, which provides comprehensive medical, social and physical care for the frail and elderly population, by adding a total of 54 slots in Saginaw, Traverse City and Newaygo. Since October of 2019, enrollment in the program has grown from serving 3,000 individuals to nearly 5,500 seniors today.
Protecting and Defending Michiganders
The budget recommendation focuses on investments to protect and defend Michiganders, including:
• $26 million investment to upgrade critical infrastructure at Selfridge Air National Guard Base to build Michigan’s defense industry and attract new flying missions and aircraft, recognizing the $30 billion that it contributes to the state’s economy and the more than 116,000 jobs it supports. 111 S. CAPITOL
• $46.8 million in opioid settlement funds directed to reduce overdose deaths through prevention, treatment, harm reduction and recovery supports for those affected by the opioid epidemic.
Making Government Work Better
To make sure government works efficiently and effectively to serve all residents, the budget recommendation calls for investments to modernize state government and save for a rainy day, including:
• $46.2 million increase in the Information Technology Investment Fund to upgrade government information technology applications and modernize legacy systems to better serve Michigan residents.
• $25 million in infrastructure improvements and maintenance for nearly 800 building complexes, 5,000 individual structures, and over 41.5 million square feet of state-owned facility space, saving taxpayers from footing the bill for expense repairs due to overdue maintenance.
For Michigander seeking more info: Copies and additional details of the Governor’s recommended budget are available at www.michigan.gov/budget.
