Michigan Lawmakers Pass $75 Billion State Budget

Michigan lawmakers stayed up through the night to pass a $75.2 billion state budget for the 2027 fiscal year. Both the state House and Senate approved the plan early Friday morning. The budget covers schools, roads, and health care for people across the state. Lawmakers missed their July 1 deadline for the second year in a row, but they still got the job done. The bill now goes to Governor Gretchen Whitmer, who must sign it before it becomes law.

The budget was passed with support from both Democrats and Republicans, making it a bipartisan agreement. It includes $19.8 billion for school aid and $14.1 billion in the general fund, which is the state's main pot of money for running government programs. Compared to last year, general fund spending was cut by $859 million. The budget does not add any new statewide taxes or fees. The state's rainy-day fund — savings set aside for emergencies — was also left untouched.

Schools get a big share of the budget. The plan sets aside $325 million to help schools keep running day to day, and raises per-pupil funding by 2.5% to $10,300 per student. Another $200 million will pay for free school meals at public schools, and $321 million will go toward mental health and safety programs in school districts. On top of that, $2.2 billion is planned for public universities and community colleges.

State Senator Darrin Camilleri, a Democrat from Trenton and a former teacher, said the budget is a sign of real progress. 'This budget shows bipartisan progress is still possible,' he said, praising the long-term funding plan for schools. He explained that Michigan had not spent enough on education for many years, and this budget changes that. He called it a big win for students and teachers across the state.

Roads and transportation also receive funding in this plan. The budget sets aside $52.7 million for roads and bridges, and includes a $123.8 million boost for trains and public transit. Governor Whitmer has made fixing roads one of her top goals and mentioned it again when talking about the new budget. Republicans also voiced support, with House Majority Leader Bryan Posthumus saying his party pushed to cut spending for the second year in a row. State Senator Ann Bollin added that the budget reflects the values of families who want government to spend wisely.

The budget also continues the Working Families Tax Credit, which helps lower the taxes paid by working people with lower incomes. It calls for ending the retirement tax, which would save money for older residents living on a fixed income. These items were priorities for Democratic lawmakers during the budget talks. The full budget is made up of two bills: House Bill 5630 and Senate Bill 878. Governor Whitmer is expected to review and sign the plan into law.