Thursday, February 6, 2025

Michigan Gov. Whitmer unveils $83.5B budget, prioritizing education, infrastructure, economic growth

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State budget office officials presented Governor Gretchen Whitmer’s seventh executive budget recommendation to the House and Senate appropriations committees Wednesday morning.

The budget recommendation totals $83.5 billion, including a general fund total of $15.3 billion and a school aid budget totaling $21.2 billion.

It proposes a 4.1% increase in base per pupil funding, $676 million for universal pre-K, and $200 million for free school meals.

The budget also designates $4.9 billion for roads and $58.4 million for Going Pro job training grants, which businesses can use to train current and new employees.

“My balanced budget recommendation for fiscal year 2026 doubles down on the kitchen table issues that make a real difference in people’s lives.

This commonsense budget will lower costs, create good-paying jobs, grow our economy, improve academic results, and support Michigan seniors.

Together, I know we can find common ground and deliver another balanced, bipartisan budget. Let’s get it done.”

Governor Gretchen Whitmer said in a statement

For the first time as governor, Whitmer must work with a split legislature on the budget.

“It’s going to be challenging but also ultimately better for the whole state of Michigan,” Republican State Rep. Donni Steele said.

“It will require us showing up, doing our part, doing our work,” Democratic State Rep. Natalie Price said.

Around 42% of the state budget recommendation relies on federal funding, which remains in limbo with the Trump administration’s focus on cutting federal spending.

“Federal funding is critical to protecting the health and safety of all Michiganders, ensuring drinking water is clean, and food is safe, keeping people in their homes and funding Homeland Security and Emergency,” State Deputy Budget Director Kyle Brent said during the presentation.

Republican State Rep. Ann Bollin, who chairs the House Appropriations Committee, said the president is fulfilling his promises.

“We should be going through the same exercise. Is there government waste? Do we need to shore up some programs,” said Bollin.

Price said her office has been fielding a lot of calls from concerned constituents.

“There is so much unknown right now. I think, at the very least, what we should be committing to is getting our budget done with the information that we know before July 1,” Bollin said.

The State Budget Office is preparing for all scenarios.

“That’s the work that our departments have been undertaking. And then whatever changes do come our way, it’s going to take all of us working together to figure out the best solutions for Michiganders,” State Budget Director Jen Flood said to lawmakers.

Here are some of the proposals included in the FY 2026 Budget.

Education:

  • $676.1 million to continue providing universal pre-K through the Great Start Readiness Program to an estimated 57,100 children

  • $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

  • $258 million to support the mental and emotional well-being of 1.4 million students through continuation of mental health and safety grants to districts

  • $202.4 million to continue expanded support for special education students – a 10% increase in the state allocation from adjusted current law levels

  • $200 million to continue providing free school meals to all 1.4 million public school students

Roads:

  • $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

  • $10 million to partner with employers to help meet their unique talent needs in industries like advanced mobility, semiconductor, aerospace defense, and life science

  • $125 million to expand CTE programs in underserved districts and fund the “Future Ready” pilot program in middle schools

  • $19 million to expand registered apprenticeship and apprenticeship readiness programs

  • $25 million to expand the existing employer-assisted housing pilot program

  • $40.4 million to provide academic remediation, specialized tutoring, and enrollment into career and technical training or college

Click here to view a copy of the FY26 Budget Book.

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