Governor Gretchen Whitmer and legislative leaders announced the passage of a balanced, bipartisan $75.2 billion budget for fiscal year 2027, focusing on lowering costs for families, enhancing student literacy, protecting healthcare access, and improving infrastructure across Michigan.
Governor Whitmer highlighted the budget as a culmination of her administration's efforts, stating, "Today’s balanced, bipartisan budget delivers for every Michigander." She added that it "will leave our state stronger than before and keep things moving forward for Michigan." Lt. Governor Garlin Gilchrist echoed this sentiment, saying, "Today's budget helps Michigan be the best place for people to live, work, and thrive."
The fiscally responsible budget allocates $14.1 billion to the general fund and $19.8 billion to school aid. State Budget Director Jen Flood emphasized the budget's role in "cementing Michigan as a national leader in response to HR 1," particularly in helping Michiganders maintain access to health care and food assistance following new federal policies.
Significant provisions aim to save residents money, including $200 million to continue free school meals for all public school students, continuing the Working Families Tax Credit, and fully rolling back the retirement tax. Education receives substantial investment, with $502 million dedicated to student literacy and achievement, including $96.1 million for free pre-K and $50 million for high-impact tutoring. K-12 schools will see a 2.5% increase in base per-pupil funding, reaching $10,300 per student.
The budget commits $185 million to stabilize Medicaid funding and $184.3 million to prepare the state to meet new federal requirements impacting food and healthcare access. Infrastructure improvements include an additional $52.7 million for roads and bridges, alongside a $123.8 million increase in state and federal support for transit and rail programs.
Investments are also directed towards economic growth, with $68.5 million for Michigan small businesses, community growth, and entrepreneurship, and continued funding for the Pure Michigan campaign. Public safety initiatives include $1.6 billion to sustain revenue sharing for local governments and $50 million for public safety grants, alongside significant funding for veteran services and environmental protection, such as $217.9 million to clean up contaminated sites.